Indonesia to extend incentives for EVs next year

- Tuesday, 14/11/2023, 09:33

The Indonesian Government is planning to extend fiscal incentives for electric vehicles (EVs), especially electric motorcycles, to the next year with support levels equivalent to this year, said Deputy Coordinating Minister of Maritime Affairs and Investment Rachmat Kaimuddin.

Talking with the press recently, Rachmat said the incentive level for electric motorcycles in 2024 will be similar to this year, which is at least 7 million IDR (446 USD).

Indonesia to extend incentives for EVs next year -0
At an EV assembling line in Jakarta. (Photo: Reuters)

In early March 2023, the Indonesian Government announced that it will support the purchase of 200,000 electric motorcycles and the conversion of 50,000 motorcycles in 2023, with a total budget of around 5 trillion IDR.

The programme applies only to domestically produced motorcycles with a localisation rate of 40% or more, benefiting micro, small, and medium-sized enterprises, as well as households with monthly electricity consumption ranging from 450-900 VA.

Indonesia has also provided other forms of support for EVs, such as reducing the  value-added tax (VAT) from 11% to 10% for electric cars; lowering the battery-based motor vehicle tax from 1-10% to 0%; and exempting the duty on the transfer of motor vehicle ownership for EVs./.