Four Electric Vehicle Manufacturers From China Ready To Start Production In Indonesia

Illustration. (Photo: Doc. Antara)

JAKARTA - Four electric vehicle manufacturers (Electric Vehicles/EVs) from China have expressed readiness to start production in Indonesia, said an official from the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves).

Deputy for Infrastructure and Transportation Coordination of the Coordinating Ministry for Maritime Affairs and Fisheries, Rachmat Kaimuddin in Jakarta, Thursday, December 21, said that he had met four electric vehicle factory companies in China that expressed readiness to invest in Indonesia.

"I just arrived from China. After talking to the four manufacturers and they are all in principle appreciate with the policies we make," said Rachmat, quoted by Antara.

Even so, Rachmat did not mention in detail the brands of the four electric vehicle manufacturers that wanted to invest in Indonesia. He only mentioned one of them, namely Wuling.

One of the four manufacturers has started to make one, the other is Wuling, it has come and has made a product. Yesterday (Wuling) launched one new product. The other three later, I'm not in a position to talk," said Rachmat.

He said that the four electric vehicle manufacturers also stated that they were ready to follow the applicable provisions in Indonesia, one of which was the use of the 40 percent Domestic Component Level (TKDN).

According to him, the arrival of the four electric vehicle manufacturers will help Indonesia to pursue the production target of 600 thousand electric cars by 2030 as targeted by President Joko Widodo.

"We have conveyed that the President's target will have a production capacity of 600 thousand by 2030. So, let them bring their products, there will be more EV products entering Indonesia," explained Rachmat.

He mentioned Presidential Regulation (Perpres) Number 79 of 2023 concerning Amendments to Presidential Regulation Number 55 of 2019 concerning the Acceleration of the Battery-Based Electric Vehicle Program for Road Transportation.

The Presidential Regulation regulates tax-free incentives for electric vehicle manufacturers provided by the government to import Completely Built Up (CBU) or a complete vehicle until the end of 2025, with a number of certain conditions and conditions.

"In Presidential Regulation (Number) 55 (Year) 2019 to (Number) 79 (Year) 2023, the philosophy is to provide incentives to be able to test the market, for those who are committed to building production capacity in Indonesia. So, if they are not committed to making production capacity in Indonesia, they are not qualified to get the incentives," explained Rachmat.

Rachmat said he was optimistic that the production target of 600 thousand electric vehicles from the four factories could be achieved by 2030. Even so, he hopes that the Ministerial Regulation (Permen) from the relevant Ministries can exist soon before the end of 2023.

"For car manufacturers, now the Presidential Regulation is out, they are waiting for the candy. We are working on this candy. We hope that before the end of the year everything will come out, there are four ministries that must issue regulatory regulations, namely the Coordinating Ministry for Maritime Affairs, Finance, Industry and also Trade," said Rachmat.