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.
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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