Chamber of Commerce and Industry: In China, 25 Percent Of Fossil Vehicles Will Switch To Electric Cars

JAKARTA - The Indonesian Chamber of Commerce and Industry (Kadin) appreciates the government's move to incentivize the development of the battery and electric car industries in order to grow rapidly.

"We appreciate the efforts of the government that has issued various incentives for the development of the battery industry and tax incentives for electric cars", said the Chairman of Indonesian Chamber of Commerce and Industry Rosan Perkasa Roeslani in a statement in Jakarta, quoted from Antara, Wednesday, April 14.

Rosan said countries in Europe will stop using fossil-fueled vehicles from 2030, including China, which is targeting 25 percent of total fossil vehicles to switch to electric vehicles by 2025.

With a share of nickel reserves amounting to 24 percent of the world's total nickel reserves, he continued, Indonesia will be pouring the backs of the world's electric vehicle batteries in line with the growing global trend towards environmentally-friendly vehicles.

In the national electric vehicle battery industry development project, the government provides super tax deduction incentives to attract private interest in developing the industry.

Incentives for the private sector are expected to strengthen the ecosystem of research and innovation in the field of electric vehicle development in the country.

In addition, the government also ratified the Sales Tax on Luxury Goods (PPnBM) for electric cars in order to increase public interest to start buying carbon emission-free vehicles.

"The cost of developing renewable energy is decreasing and global investment continues to increase, so governments and private sector need to work together to generate this energy transition", Rosan said.