Accelerate The Use Of Electric Vehicles, The Government Calls Investment 50 KBLBB Producers Achieved IDR 3 Trillion

Expert Staff to the Minister of Industry for Business Climate and Investment Andi Rizaldi. (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Industry (Kemenperin) continues to encourage the acceleration of the implementation of battery-based electric motorized vehicles or KBLBB. This is done as an effort to reduce greenhouse gas emissions.

Expert Staff to the Minister of Industry for Business Climate and Investment Andi Rizaldi said that currently Indonesia already has 50 electric vehicle manufacturers or manufacturers including the two-wheeled vehicle and four-wheeled vehicle industry.

"Well, the total investment of the 50 electric vehicle manufacturers reached IDR 3 trillion," Andi said in his remarks representing the Minister of Industry at the Sustainability and Inclusive Conference 2023 event in the Kuningan area, South Jakarta, Tuesday, August 29.

Andi said that various efforts have been made by the government to accelerate this, one of which is by providing incentives. So, by 2035 it is targeted that there will be one million four-wheeled vehicles or more which are electric vehicles.

"This is equivalent to reducing CO2 (carbon dioxide) by 12.5 million barrels of fuel or about 4.6 million tons of CO2," he said.

He added that the same applies to two-wheeled vehicles, which in 2035 is targeted to reach 12 million units of electric vehicles. This amount is equivalent to 18.86 million barrels of fuel or 6.9 million tons of CO2.

In addition, Andi continued, the government has also taken policies related to accelerating the use of electric vehicles. The first step is to provide direct incentives for two-wheeled vehicles that have a domestic component level (TKDN) of at least 40 percent.

The next step is to provide incentives in the form of a value added tax (VAT) borne by the government for four-wheeled vehicles and electric buses. This VAT reduction is carried out between 5 to 10 percent, depending on the TKDN level value.

According to Andi, this is also similar to that of other countries, such as China, India, Thailand, and Vietnam, in an effort to accelerate the use of electric vehicles.

"Well, at this time we are proposing to provide relaxation of the tax system within the framework of new investment or expansion for CKD importation by fulfilling TKDN and importing CBU within the investment framework," he concluded.