Indonesia announced August 10 it would give car manufacturers two more years to qualify for electric vehicle incentive programs.
Under the revised investment rule, automakers will need to commit to producing at least 40% of the content of EVs in Indonesia by 2026 to qualify for government-sponsored incentives, two years later than the original target date.
Before Indonesia introduced this new measure, only two manufacturers — Wuling Motors and Hyundai — had moved enough of their production to the country to qualify for full incentives, according to Reuters. Both organizations have factories outside of Jakarta and lead the nation’s automotive market in EV sales.
“The relaxation on the local content requirement is to attract the investors,” said Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, at the 2023 Gaikindo Indonesia International Auto Show taking place from August 10 to August 20. “We roll out incentives for all the global carmakers, not for a certain name only.”
Prior to the decision, Indonesia announced plans to reduce import taxes from 50% to zero for EV manufacturers planning investments in the country.
Indonesia also said that Mitsubishi Motors would be committing $375 million to expand its operations in the country, including the production of its Minicab-MiEV electric car. Mitsubishi will begin producing EVs in the region in December 2023.
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- Source: https://www.supplychainbrain.com/articles/37898-indonesia-extends-timeline-for-carmakers-to-qualify-for-ev-credits
