Gov’t to Mass Produce EV By 2025, Minister Says

Minister of Industry Airlangga Hartarto responds to reporters’ questions after a limited meeting, at Presidential Office, Jakarta, Monday (14/1). (Photo by: Jay/ PR Division)

The Government has set the target of mass-producing electric vehicle (EV), both for cars and motorcycles in 2025.

To that end, the Government is preparing supporting infrastructures and fiscal facilities to support the start of EV industry.

“The manufacturing of electric motorcycle is more simple. We target 20 percent of electric cars or motorcycles out of the total production by 2025,” Minister of Industry Airlangga Hartanto told reporters at the Presidential Office, Jakarta, Monday (14/1).

According to the Minister, the Government in the near future will draft a Presidential Regulation to regulate the fiscal facilities and the supporting infrastructure. The regulation will stipulate those who meet the requirements and are eligible for using the facilities.

The first step, he added, will be the introduction of a zero percent import duty for EV and luxury goods tax (PPnBM) will be lowered afterwards.

The Minister added that the Government also welcomes foreign EV brands to enter Indonesian market.

“Indonesia’s system and facilities are open both for existing and new brands,” Airlangga said, adding that it also applies for both hybrid and EV.

Regarding issuance of the new Presidential Regulation on EV, Airlangga said that the draft is already formulated and there will be consultation between Minister of Finance and Commission XI of the House of Representatives before the regulation takes effect.

Nevertheless, the Minister admitted that some brands have started producing electric motorcycles and when the Presidential Regulation is issued, the production is expected to increase. (MAY/JAY/ES)

Translated by : Rany Anjany Subachrum
Edited by : M. Ersan Pamungkas