French, Chinese EV manufacturers to invest in Indonesia
Indonesian Minister of Industry Agus Gumiwang Kartasasmita announced that three global electric vehicle (EV) manufacturers - France’s Citroen and China’s BYD and AION - have committed to establishing EV manufacturing plants in the Southeast Asian nation.
Jakarta (VNA) - Indonesian Minister 📖of Industry Agus Gumiwang Kartasasmita an🔯nounced that three global electric vehicle (EV) manufacturers - France’s Citroen and China’s BYD and AION - have committed to establishing EV manufacturing plants in the Southeast Asian nation.
Agus highlighted that these companies will benefit from zero import taxes and exemption from the 15% luxury goods tax (PPnBM).
The incentives are part of Indonesia’s broader strategy to support the electric vehicle industry. The minister emphasised that these efforts align with the Indonesian Government’s goal of making Indonesia a hub for battery electric vehicle (BEV) production in Southeast Asia.
Starting January 1, 2025, Indonesia will also reduce taxes on hybrid vehicles by 3% as part of efforts to encourage the development of environmentally friendly vehicles. Currently, hybrid vehicles are subject to a luxury goods tax (PPnBM) ranging from 6% to 12%, while BEVs enjoy several incentives, including a 0% luxury goods tax.
Agus said that this demonstrates his country's strong commitment to the manufacturing sector by offering incentives to stimulate the automotive industry./.
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