The Indonesian government plans to issue new regulations regarding electric cars coming to Indonesia under the Completely Built Up (CBU) scheme. The regulation being discussed is the revision of Presidential Regulation Number 55 of 2019 concerning the acceleration of the domestic electric vehicle ecosystem.
The revision is contained in Presidential Regulation Number 79 of 2023 which was ratified on December 8. The revised regulations stipulate that companies that are committed to investing in producing electric cars domestically can import CBU until the end of 2025.
The incentives you get can be in the form of discounts on import duties, PPnBM and local taxes.
This policy was immediately welcomed positively by Neta Auto Indonesia (NAI). They see that this regulation means imported CBU electric cars can get various incentives from the government like locally produced models.
“This is what has been eagerly awaited. So all the OEMs that play in electricity are really looking forward to this incentive and Neta is basically very enthusiastic about this incentive and we have a commitment to be able to participate in this incentive,” said the Director of External Affairs and Product NAI Fajrul Ilhami.
Furthermore, not all producers can enjoy this incentive. This policy can only be obtained by those who have committed to producing electric cars in a certain quantity and period by meeting the Domestic Component Level (TKDN) requirements.
In the revised regulations, the government also changed the TKDN rules so that they were backwards from before. TKDN of at least 40 percent has been changed to mandatory until 2026, whereas the old regulations were set before 2024.
Then the minimum TKDN of 60 percent was revised to before 2030 and then the minimum TKDN of 80 percent for the following years.
Fajrul explained that Neta principals were studying the conditions set by the government in the revision of the regulations.
“Currently from HQ we are also studying the requirements. And we will also bring in a team from China to carry out local content,” he said.
“Indeed, they also understand what the provisions are, 40 percent, 60 percent, so that’s what we are trying to understand,” he said again.
NAI is currently selling the NETA V electric car but its status is a CBU imported electric car. The company has committed to producing NETA V in Indonesia using assembly facilities owned by Handal Motor Indonesia (HMI) in Bekasi, West Java.
“We also have a target that next year we will enter CKD and will also follow the provisions that have been made in Presidential Decree number 79. We will try directly CKD with TKDN following the government’s road map,” said Fajrul.
