Government Reinforces 0 Percent Import Duty Policy For Electric Vehicles To Strengthen National Industry

Illustration (Unsplash)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) supports the policy of developing the Battery-Based Electric Motor Vehicle (KBLBB) industry as a state strategic program.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu said KBLBB is closely related to the new paradigm of green and sustainable economic development because this sector is directly related to achieving the government's targets in the Nationally Determined Contribution (NDC).

"For this reason, the Government has set a special tariff of zero percent import duty for motorized vehicles that are imported in incomplete and incomplete conditions (Incompletely Knocked Down / IKD)," he said as quoted on the official website on Tuesday, March 1.

According to Febrio, this step is contained in the Minister of Finance Regulation Number PMK-13/PMK.010/22 concerning the Fourth Amendment to the Regulation of the Minister of Finance Number 6/PMK.010/2017 concerning Stipulation of the Goods Classification System and Imposition of Import Duty Tariffs on the stipulated Imported Goods. on February 22, 2022.

"This incentive will make the KBLBB industry more developed because it will reduce production costs so that the price of the vehicle is more affordable for the community," he said.

Febrio added that the plan to develop the KBLBB industry is expected to increase investment, save energy consumption, especially fuel oil (BBM), environmental quality, and encourage mastery of technology.

"We want to be able to make Indonesia a production base and export hub for electric motorized vehicles," he said.

For information, the government currently has a roadmap for the development of the automotive industry in the medium term, namely 2020-2030, with a focus on the capabilities of batteries, electric motors, and converters. The provision of 0 percent Import Duty incentives is expected to further encourage the achievement of these targets.

"The room for growth in the market share of domestically produced electric motor vehicles is still very large in Indonesia. In addition, world demand for KBLBB also continues to experience a significant increase. Government policies will continue to be directed at helping to make good use of this space in line with the economic recovery which is expected to be stronger in the future," closed Febrio.