No More Discussions Yet, Electric Car Incentives Are Likely To End This Year

Electric car (photo: Antara)

The Ministry of Industry (Kemenperin) said that until now there has been no discussion regarding the continuation of the incentive regulations for importing electric cars in Indonesia next year.

This means that it is very likely that the facility will end in December 2025, according to the applicable policy in the Regulation of the Minister of Investment Number 6 of 2023 junto Number 1 of 2024.

This was conveyed by the Director of Maritime Industry, Transportation Equipment and Defense Equipment (IMATAP) of the Ministry of Industry, Mahardi Tunggul Wicaksono in a media discussion entitled Import BEV Incentive Polemic in Jakarta, Monday, August 25.

"Indeed, until today, we inform all of our friends, we have not had any meetings with other ministries/agencies regarding the sustainability of this incentive," said Tunggul.

There is not much information that can be conveyed by Tunggul regarding this matter, considering that until now there has been no coordination meeting with other ministries/agencies.

"Because there are no meetings and discussions yet, we can assume that this incentive will end in accordance with existing regulations," he continued.

Based on this regulation, since February 2024 the government has implemented incentives in the form of exemption from import duties and PPnBM for importing battery-based electric vehicles (BEV) in the whole form (CBU). In addition, there is also a bank guarantee provision for each import unit.

This policy is a derivative of the Regulation of the Minister of Investment and Downstreaming or Head of BKPM Number 1 of 2024, with a validity period until December 2025.

Producers who take advantage of related facilities are required to be committed to producing domestic vehicles after imports with a ratio of 1:1.

As for March 31, 2025, it was set as the deadline for submitting applications for import incentives, while December 31, 2025 was the deadline for imports or the end of the incentive program.

The provision of electric vehicle incentives is also contained in the Minister of Finance Regulation (PMK) Number 12 of 2025 (PMK 12/2025), which was issued and took effect on February 4, 2025.

Through this regulation, the VAT DTP incentive for electric car sales was extended as previously policy, namely PPN DTP 10 percent of the selling price for electric cars with the Domestic Component Level (TKDN) at least 40 percent and 5 percent for buses until December 2025.