Finalizing New RPMK, Ministry of Finance Adjusts 0% Import Duty Tariff for Electric Vehicles

The Ministry of Finance (Kementerian Keuangan – “Kemenkeu”) is currently harmonizing the Draft Regulation of the Minister of Finance (Rancangan Peraturan Menteri Keuangan – “RPMK”) on the Second Amendment to Regulation of the Minister of Finance (Menteri Keuangan- (“Menkeu”) No. 26/PMK.010/2022 concerning the Determination of the Goods Classification System and Imposition of Import Duty Tariffs on Imported Goods, as amended by Regulation of the Menkeu No. 10 of 2024 (collectively referred to as “PMK 26/2022”). Adjustments are made to the 0% import duty incentive policy for imports of electric vehicles (“EV”).

““The adjustment of import duty tariffs from 10% to 0% on a number of strategic imported goods is to encourage national investment competitiveness, especially in the battery electric motor vehicle (kendaraan bermotor listrik berbasis baterai – “KBLBB”) sector and products of information technology,” said an official from the Directorate General of Customs and Excise (Direktorat Jenderal Bea dan Cukai – “DJBC”) of Kemenkeu to Hukumonline.

It is known that import duty revenues in the first quarter of 2025 were corrected by Rp11.3 trillion. The figure fell 5.8% year-on-year, influenced by revenue from electric motor vehicle commodities, along with the government's policy of providing import duty incentives, so that the tariff becomes Rp0.

"So even though the volume of electric vehicles is large, the import duty tariff is zero," he continued.

Adjustments were also made to support the acceleration program for investment in four-wheeled electric vehicles, both in the form of Completely Built Up (CBU) and Completely Knock Down (CKD), as stipulated in Regulation of the Minister of Investment/Head of the Investment Coordinating Board (Badan Koordinasi Penanaman Modal – “BKPM”) No. 6 of 2023 on Guidelines and Governance for the Provision of Import Incentives and/or Delivery of Four-Wheeled Battery Electric Motor Vehicles in the Framework of Investment Acceleration, as amended by Regulation of the Minister of Investment/Head of the BKPM No. 1 of 2024 (collectively referred to as  “PermenBPKM 6/2023”). Furthermore, the 0% import duty tariff will be given on a limited basis until 31 December 2025 to business actors who meet the provisions and receive incentive approval from the Ministry of Investment.