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Division among ministers may delay issuance of EV regulation

The presidential regulation would stipulate a number of fiscal incentives for the electric vehicle (EV) industry, such as import tariff incentives for battery-based EVs.

News Desk (The Jakarta Post)
Jakarta
Mon, July 29, 2019

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Division  among ministers may delay issuance of EV regulation Automobili Pininfarina's 'Battista' electric hypercar is displayed at the Geneva Motor Show in Switzerland on March 5. The issuance of the presidential regulation on electric car manufacturing in Indonesia may be delayed again because of divisions among the minister over the plan. (REUTERS/Edward Taylor)

T

he issuance of the long-waited presidential regulation on the ecosystem and manufacturing of electric vehicles (EV) may be further be delayed, even though Finance Minister Sri Mulyani said last week the regulation would be issued this month.

Energy and Mineral Resources Minister Iganisius Jonan acknowledged that the division among relevant ministers over the technical aspects of EV manufacturing remained a stumbling block for the presidential regulation.

Jonan said differences among the relevant ministers, especially related to the use of local components, remained a major obstacle, although the drafting of the regulation had begun almost 18 months ago.

"The presidential regulation has been awaited for almost one and a half years, but the debates between ministers have not finished. There are those who are pro electric cars, some are against them," Jonan said Jakarta as reported by kompas.com.

The presidential regulation would also stipulate a number of fiscal incentives for the EV industry, such as import tariff incentives for battery-based EVs and their supporting machinery and materials, VAT deductions and tax incentives for imported goods related to investment in the EV industry.

"If we have wait for the local component to reach 100 percent, I think the regulation will be never be issued even until the people, who are currently involved in the drafting of the e regulations, have retired," said Jonan. (hen)

 

 

 

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