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Indonesia sets 20 percent electric vehicle scheme in 2025

Indonesia will use time frame to develop the ecosystem of electric vehicles. Indonesia's Minister of Industry, Airlangga Hartarto, said the government will implement the scheme as part of an electric car roadmap and President Joko Widodo has agreed to set the electric vehicle portion to fill 20 percent of market share by 2025.

Tinuku Indonesia sets 20 percent electric vehicle scheme in 2025

"We discussed with Mr. President and agreed to do some sort of restriction at a certain time, the one we approve is 20 percent of the production of vehicles based on electric vehicles in 2025. If 2 million units then 400,000 units are electric vehicles," Hartarto said on Wednesday.

In this world following the two schemes is to ban the total or apply a minimum percentage of production of electric vehicles. A few days ago the Energy and Natural Resources Minister, Ignatius Jonan, said one of the road maps was to ban oil-fueled vehicles by 2040.

Other regulations related to building ecosystems and accelerating the environmentally friendly vehicle industry are the various applications of tax discounts on import duty on electric vehicles and the application of tax rates based on the amount of carbon emissions in fossil fuel vehicles.

Hartarto said based on a free trade agreement (FTA) will impose a 50 percent tax on electric vehicles on the most favored nation (MFN). If the electric car manufacturer has a roadmap to assemble the electric vehicle in Indonesia, the tax is only applied at 5 percent.

"If you do not have a commitment to build in the country, certainly not a 5 percent facility, so this will be encouraged," said Hartarto.

The government also invites investors and a variety of easy policies to build battery charging stations. PLN's State-owned electricity company will build and provide free equipment, while investors only provide land for stations.

Hartarto said the self charging electric vehicle will also be prepared in Indonesia. The ministry also said some manufacturers have been interested in developing electric cars in Indonesia and it will see its facilities.

"Some of China, Japan and Taiwan, we will facilitate them. The automotive industry ecosystem includes network distribution, factory capacity, spare part, resale value and financing," Hartarto said.


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