The Government remains committed to encouraging the development of an Indonesian electric vehicle industry. To this end, various fiscal and non-fiscal incentives are available to parties that invest in the Indonesian electric vehicle industry. Fiscal and non-fiscal incentives are also available to parties that contribute indirectly to the development of the Indonesian electric vehicle industry as well as to buyers and users of Indonesian electric vehicle industry products and facilities.
During the course of the past six months a series of implementing regulations has been issued setting out, in detail, how at least some of the available fiscal incentives, for investment in the Indonesian electric vehicle industry, will work.
It is now possible to make a more informed assessment of the available fiscal and non-fiscal incentives.
In this article, the writer will review what we currently know about the available fiscal and non-fiscal incentives and how they are intended to work before considering to what extent the available fiscal and non-fiscal incentives are likely to make a material contribution to ensuring that the Government’s vision of a vibrant Indonesian electric vehicle industry becomes a reality any time soon.