Regarding The Issue Of Providing Hybrid Vehicle Incentives, Periclindo: We Disagree!

Toyota Corolla Cross HEV. (Doc. Toyota-Astra Motor)

JAKARTA - Some time ago, the government through the Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that there were no changes in regulations around the Indonesian automotive industry.

This can mean that the government does not issue a hybrid vehicle incentive policy in the country. The government considers that this segment has received good reception and has even experienced significant growth compared to before.

Of course, this has received various responses, one of which is the Indonesian Electric Vehicle Industry Association (Periklindo) which welcomes this news.

Secretary General of Periklindo Tenggono Chuandra Phoa, said that his party does not support the incentives for hybrid vehicles in Indonesia because it still relies on fossil fuels and carbon emissions.

Our obligation as Periclindo to fight for EVs in Indonesia, we do not support hybrids. It is still fossil fuels. Fossil is supported by government subsidies. If the government subsidies add more batteries, I don't think it fits," said Tenggono when met by the media in Menteng, Jakarta, Wednesday, September 4.

Then, Periclindo Chairman Moeldoko also emphasized that his party did not support hybrid vehicles to get subsidies.

"We do not support the hybrid to get subsidies, yes, it is clarified," said Moeldoko.

Tenggono also explained that Periklindo was the first organization to hold an EV special exhibition in Southeast Asia and he reiterated that Indonesia's future is an electric vehicle, not a hybrid.

This is Periclindo. The association that first held a special EV exhibition in Southeast Asia. Other countries are still thinking about it. Indonesia must have EVs, nothing else," added Tenggono.

Currently, hybrid cars are subject to Sales Tax on Luxury Goods (PPnBM) of 6-12 percent. This is different from BEV which gets various facilities, ranging from PPnBM 0 percent to VAT borne by the government (DTP).

The VAT DTP facility is given specifically for electric cars with a Domestic Component Level (TKDN) of at least 40 percent. The amount of VAT DTP given is 10 percent.

With this facility, the VAT imposed on the delivery of electric cars with TKDN at least 40 percent is 1 percent. The VAT DTP facility is provided for the tax period from January to December 2024.