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Jakarta Post

Regulation on low-emissions incentive hits 'another' snag

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, March 14, 2019   /   04:28 pm
Regulation on low-emissions incentive hits 'another' snag Industry Minister Airlangga Hartarto (Antara/Wahyu Putro)

While the government stated last week that it would soon issue a new regulation on low-emission incentives to boost the development of electric vehicles, it seems the process is not as smooth as was initially presented.

Industry Minister Airlangga Hartarto was unable to provide a date in responding to a question on when the regulation would be issued.

“It depends on when it is signed,” Airlangga said in Jakarta on Wednesday, as quoted by

His response differs from the statement Maritime Coordinating Minister Luhut Binsar Pandjaitan made on March 5, when he said that the draft regulation was ready and merely awaiting the President's signature.

“I have received a copy of the draft. So we only need an agreement among us [ministers],” Luhut was quoted as saying, adding that he would submit the draft regulation to the State Secretariat for President Joko "Jokowi" Widodo to sign.

However, an unnamed official said the new regulation would be issued in second half of the year.

This is another delay for the Presidential Regulation (perpres) on electric vehicles, which was originally expected to be issued in late 2017. Luhut had promised at the end of last year that it would be issued in January 2019.

Earlier on Monday, Airlangga said the new regulation would offer low-emission incentives of between 0 to 30 percent in the luxury tax (PPnBM) rate for electric vehicles.

The current PPnBM scheme carries a maximum rate of 125 percent and is based on engine capacity, while the new regulation proposes a scheme based on a vehicle's carbon dioxide emissions. (bbn)