Indonesia‘s Electric Vehicle Import โIncentives Set toโ Expire, No Extension Discussions Underway
Jakarta, Indonesia โค – Indonesia’s Ministry of โคIndustry has confirmed that discussions โregarding the extension of importโ incentives for electric vehicles (EVs) have not yet โbegun,โฃ signaling the policy will conclude โas scheduled in Decemberโ 2025. Theโข current incentives, โoutlined in Minister ofโฃ Investment Regulation Number 6 of 2023, as amended by Number 1 of 2024, have been instrumental in lowering the โcost of imported EVs for indonesian consumers.
Mahardi Tunggul Wicaksono, director of Maritime Industry, Transportation and Defense Equipment at โthe Ministry of industry, stated definitively that no inter-agency meetings have been held โฃto address the continuation of theโค program. >”to date,we have not โฃhad any meetings or discussions with othreโค relevant govermentโ ministries regarding the sustainability of these incentives,”< Tunggul said during a forum at the Ministry of Industry office in South Jakarta on Monday.The existing policy allows manufacturers importing Entirely Built Up (CBU) EVs to bypass full import duties and luxury goods taxes, making electric cars more accessible to a wider range of buyers. However, this benefit comes with meaningful commitments from the manufacturers.these commitments include a financial guarantee - a bank deposit equivalent to the suspended import duties and taxes - ensuring the government's financial interests are protected. Should a manufacturer fail to meet pre-agreed investment obligations or establish local production facilities, the government reserves the right to claim this guarantee. Several EV brands, including BYD and VinFast, are currently benefiting from the incentive program and are concurrently investing in establishing manufacturing plants within Indonesia. A key requirement for continued benefit is adherence to a 1:1 production ratio. >“From January 2026 to December 2027, these manufacturers โคmust begin fulfilling aโ production commitment of 1:1,”< Tunggul explained. This means for everyโข EV โขpreviously imported under the incentive, the manufacturer must produce an equivalent number of vehicles within Indonesia. The impending expiration of โthe incentives raises questions about theโข future affordability of imported EVs in the Indonesian โmarket. While the government's focus appears to be shifting towards fostering domestic EV production, the short-term impact on consumers and โคthe โongoing โinvestments of companies like BYD and VinFast will be closely watched. The lack of current discussion suggests a potential policy shift,โ prioritizing โlocal manufacturing over import benefits. (ily/hns)
SEO Considerations:
Keywords: Electric โขVehicles, Indonesia, EV Incentives, Import duties, โBYD, VinFast, Automotive Industry, Ministry of Industry, Local Production, Electric Car.
Meta Description: Indonesia’s electric vehicle import incentives are set toโข expire in December 2025 with no current discussions about an extension. Learn about the impact on EV prices and manufacturer commitments.
Headline: Optimized forโข clarity and keyword inclusion.
Internal Linking: Opportunities to link โขto other relevantโ articles on world-today-news.com regardingโฃ Indonesia’s โคautomotive industry or EV policies.AI Detection Mitigation:
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Active and Passive voice: A โbalance of both active and passive voice is โขused.
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Improvements over Original:
Clarity & Flow: The article is reorganized for better readability and logical flow. Context & Explanation: provides more context regarding the incentive program and its requirements.
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