Government Prepares Incentives for Electric Trucks

The Ministry of Industry (“Kemenperin”) is currently preparing a range of incentives to support the adoption of electric trucks in Indonesia. Various forms of incentives, as disclosed by Patia Jungjungan Maningdo, Head of the Battery-Powered Electric Vehicles (“BEV”) Industry Team at the Ministry of Industry, are currently under review, ranging from tax incentives to import duty exemptions.

“For Kemenperin, specifically, we are proposing to the Ministry of Finance and the Coordinating Ministry for Economic Affairs so that additional incentives can be provided,” he stated.

Patia stated that Kemenperin is prepared to propose a Luxury Goods Sales Tax incentive (“PPnBM”) specifically for trucks to the Ministry of Finance and the Coordinating Ministry for Economic Affairs, once production has commenced in Indonesia. Kemenperin is also considering the implementation of a 0% import incentive scheme for Completely Built Up (“CBU”) units to attract early-stage investors, similar to measures that have been successfully applied in the passenger vehicle segment, to be extended to the truck sector.

He emphasized that the government will only introduce additional incentive packages once there is clear evidence of serious investment interest and concrete investment plans from manufacturers. At present, Kemenperin, together with the Ministry of Investment and Downstreaming/Investment Coordinating Board (Badan Kelola Penanaman Modal - “BKPM”), has been exploring the interest of several investors from China as a basis for further policy formulation on incentives.