Government Incentives for Encourage People to Buy Electric Cars

INDUSTRY.co.id - Deputy Minister of Trade, Jerry Sambuaga attended the Inbuyer Electric Vehicle (EV) Expo 2023 which took place in Jakarta, Tuesday (28 Nov).

In his remarks, the Deputy Minister of Trade said that the government had designed a strategy to create an ecosystem for electric cars and electric vehicle batteries through Presidential Regulation Number 55 of 2019 concerning the Acceleration of the Battery-Based Electric Motor Vehicle Program for Road Transportation.

The Deputy Minister of Trade added that the government has also provided several incentives for consumers to encourage more people to buy electric cars, including value added tax (VAT) discounts of up to 10%, Luxury Goods Value Added Tax (PPnBM) of 0%, minimum down payment of 0 % and low interest rates for electric vehicles.

The Deputy Minister of Trade further explained that Indonesia has the number one nickel reserves in the world, amounting to approximately 30% of world reserves. With this potential, Indonesia has a huge opportunity to become a producer of EV batteries and lithium batteries for electric vehicles.

The Deputy Minister of Trade hopes that this event can encourage superior local products and create new industries that can encourage economic growth.