RI's Aspiration To Become A Major Player In The Electric Vehicle Industry: Production Of Millions Of Units By 2030

JAKARTA - The government through the Ministry of Industry is determined to accelerate the development of electric vehicles (EV) in the country through a series of efforts, including the preparation of a roadmap for EV development, providing incentives, and creating a conducive ecosystem.

Recently, the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the government would boost the production of electric vehicles with a target of 600,000 units for four wheels or more, and 2.45 million units for two wheels in 2030.

"In an effort to encourage Indonesia to become a major player in the EV industry, the government creates an EV ecosystem by involving stakeholders consisting of manufacturers, battery manufacturers, pilot projects, consumers, and infrastructures such as charging stations and pilot projects," he said in the Forum of Investor Daily Summit 2021, Wednesday, July 14th.

The Minister of Industry added that in the roadmap, it is estimated that the purchase of electric vehicles for four wheels will reach 132,983 units, while for two-wheel electric vehicles will reach 398,530 units.

In order to stimulate public interest in using and buying electric vehicles, the government has prepared a number of incentive schemes, such as the Luxury Goods Value Added Tax of PPnBM at 0 percent, free transfer fees, a minimum down payment of up to 0 percent, and low-interest rates for installment purchases.

On the other hand, EV producers are also given convenience through various benefits such as tax holidays, tax allowances, exemption from import duties, government-borne import duties, and super tax deductions for development and research activities.

"This is a facility provided in order to encourage EV industrialization," said the Minister of Industry.

Meanwhile, another advantage of the development of the electric vehicle industry is the environmental aspect which is believed to be more secure because the exhaust emissions produced are zero.

The government itself calculates a reduction in CO2 emissions of 2.7 million tons for four wheels or more and 1.1 million tons for two wheels in the next decade of 2030.