The Indonesian government has announced it will provide fiscal incentives to support the development of a local electric vehicle market, according to local reports.
Industry Minister Airlangga Hartarto told local reporters the government is planning to cut import duties on electric vehicles to zero to help grow the local market here.
Go deeper with GlobalData
Separately, Finance Minister Sri Mulyani Indrawati said regulations are being prepared that would provide incentives to support investment in some related industrial activities, such as battery production and the construction of charging stations. She told reporters "the draft regulation is already formulated, but we need to consult with the House of Representatives"before it is enacted into law.
Mr Hartarto said such legislation is long overdue, with BMW and Volkswagen among a number of automakers that are keen to invest if such regulations were put in place.
The government has previously announced sales targets for electric and hybrid vehicles to amount to 20% of total new passenger vehicle sales by 2025.
Meanwhile, Mazda Motor said it has applied for investment incentives in Thailand to produce electric vehicles that the country, in addition to already confirmed plans to produce plug-in hybrid vehicles.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
