Chinese and European Firms Keen to Build EV Charging Stations in Indonesia, Regulatory Relaxation Planned
Jakarta: The availability of public electric vehicle charging stations (SPKLU) in Indonesia is a crucial aspect of the electric vehicle ecosystem. The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has stated that numerous companies from China and Europe are keen to build charging stations in the country.
"In terms of interest in building charging stations, there are already many from both China and Europe," said Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, as quoted by Antara.
He explained that the desire of Chinese and European companies to invest in building charging stations in Indonesia has been hampered by regulations. The ministry will therefore provide regulatory relaxation in the near future so that charging station investors can promptly deploy their capital in the country.
The regulation in question is Government Regulation (PP) Number 5 of 2021 concerning Risk-Based Business Licensing.
"Under current regulations, every foreign investment entering Indonesia must invest a minimum of Rp10 billion in its industrial segment. Meanwhile, building a charging station does not require Rp10 billion. So we will introduce relaxation measures," he said.
PT PLN (Persero) recorded that by the fourth quarter of 2024, the number of public charging stations nationwide had reached 2,667 units. This figure surged year-on-year from the previously recorded 624 units.
Previously, the Ministry of Industry stated that several automotive companies from China and Europe were keen to explore investment in electric vehicle (EV) and EV battery development. This has been a consequence of import tariffs imposed by the United States.
Mahardi Tunggul Wicaksono, Director of Maritime, Transportation and Defence Equipment Industries (IMATAP) at the Ministry of Industry, stated that the tariff war does not always bring solely negative impacts. This is evidenced by the willingness of several Chinese and European companies to invest their capital in Indonesia.
"In terms of interest in building charging stations, there are already many from both China and Europe," said Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment and Downstreaming/BKPM, as quoted by Antara.
He explained that the desire of Chinese and European companies to invest in building charging stations in Indonesia has been hampered by regulations. The ministry will therefore provide regulatory relaxation in the near future so that charging station investors can promptly deploy their capital in the country.
The regulation in question is Government Regulation (PP) Number 5 of 2021 concerning Risk-Based Business Licensing.
"Under current regulations, every foreign investment entering Indonesia must invest a minimum of Rp10 billion in its industrial segment. Meanwhile, building a charging station does not require Rp10 billion. So we will introduce relaxation measures," he said.
PT PLN (Persero) recorded that by the fourth quarter of 2024, the number of public charging stations nationwide had reached 2,667 units. This figure surged year-on-year from the previously recorded 624 units.
Previously, the Ministry of Industry stated that several automotive companies from China and Europe were keen to explore investment in electric vehicle (EV) and EV battery development. This has been a consequence of import tariffs imposed by the United States.
Mahardi Tunggul Wicaksono, Director of Maritime, Transportation and Defence Equipment Industries (IMATAP) at the Ministry of Industry, stated that the tariff war does not always bring solely negative impacts. This is evidenced by the willingness of several Chinese and European companies to invest their capital in Indonesia.