JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the government wants the automotive industry in the country to immediately become a leading sector in the development of electric vehicles.

"The ecosystem development is currently being boosted," he said in a press statement as quoted on Sunday, April 18.

The Minister of Industry said that the production target for battery-based electric motorized vehicles (KBLBB) in 2030 is 600,000 units for four or more wheels, and as many as 2.45 million units for two wheels.

"The KBLBB production target is expected to be able to reduce CO2 emissions by 2.7 million tons for four wheels or more and 1.1 million tons for two wheels," he said.

To date, there have been three domestic industrial companies that have built KBLBB production facilities with four or more wheels with a capacity of 1,680 units per year.

Meanwhile, there are 21 industrial companies for electric motorbikes with a production capacity of 1.04 million units per year.

For information, in order to encourage the industrialization of KBLBB, the government provides various fiscal and non-fiscal incentives, namely for KBLBB consumers in the form of imposition of PPnBM of 0 percent, and imposition of local taxes (PKB and BBNKB) at a maximum of 10 percent.

"Meanwhile, KBLBB industrial companies can take advantage of various incentives such as tax holidays, mini tax holidays, tax allowances, exemption from import duties, government-borne import duties, and super tax deduction for research and technology development activities," he explained.

With these various policies, the Minister of Industry said that now is the right moment to accelerate the development of electric vehicles in Indonesia.

"To spur the infrastructure, we continue to coordinate with related ministries," he said.

To note, a number of globally renowned automotive principals, such as those from Japan, have stated their commitment to invest in the development of electric vehicles in Indonesia.

"For example, Toyota, Honda and Mitsubishi, especially hybrid-based development," concluded Minister Agus Gumiwang.


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