Government to Offer Greater Incentives for EV Producers with Higher Local Content
Jakarta (ANTARA) - Investment and Downstreaming Minister/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani said the government will provide greater incentives to electric vehicle (EV) producers that achieve higher levels of local content (TKDN).
According to him, the higher the TKDN that EV producers can meet, the greater the incentives they will receive.
"So the concept is that we will change this — with higher TKDN, we will provide even greater incentives. So we are taking a more positive approach going forward regarding TKDN," Rosan said in Jakarta on Tuesday.
There are currently seven EV producers building production facilities: VinFast, Volkswagen (VW), BYD, Citroen, AION, Maxus, and Geely. The seven producers have already invested a total of Rp15.4 trillion to produce 281,000 units per year.
"So those are the ones that have started declaring their relocation and have begun operations," he added.
Furthermore, Rosan said Indonesia already possesses the entire ecosystem for EV batteries. With more people switching to electric vehicles, the government's net zero emission target will be achieved more quickly.
The government has revised a regulation to allow third parties to build EV charging stations. According to him, with the target of producing 2.5 million EVs per year by 2030, a robust ecosystem is needed, including charging stations.
"Therefore, we have revised a government regulation so that charging stations can be built by third parties, enabling them to spread rapidly across Indonesia," Rosan said.
Rosan stated that charging stations are essential to driving the growth of EV usage. He also called on investors wishing to invest in Indonesia to conduct research and development related to electric vehicles. The government will provide incentives of up to 300 per cent for investors willing to undertake research and development.
According to him, the higher the TKDN that EV producers can meet, the greater the incentives they will receive.
"So the concept is that we will change this — with higher TKDN, we will provide even greater incentives. So we are taking a more positive approach going forward regarding TKDN," Rosan said in Jakarta on Tuesday.
There are currently seven EV producers building production facilities: VinFast, Volkswagen (VW), BYD, Citroen, AION, Maxus, and Geely. The seven producers have already invested a total of Rp15.4 trillion to produce 281,000 units per year.
"So those are the ones that have started declaring their relocation and have begun operations," he added.
Furthermore, Rosan said Indonesia already possesses the entire ecosystem for EV batteries. With more people switching to electric vehicles, the government's net zero emission target will be achieved more quickly.
The government has revised a regulation to allow third parties to build EV charging stations. According to him, with the target of producing 2.5 million EVs per year by 2030, a robust ecosystem is needed, including charging stations.
"Therefore, we have revised a government regulation so that charging stations can be built by third parties, enabling them to spread rapidly across Indonesia," Rosan said.
Rosan stated that charging stations are essential to driving the growth of EV usage. He also called on investors wishing to invest in Indonesia to conduct research and development related to electric vehicles. The government will provide incentives of up to 300 per cent for investors willing to undertake research and development.