Indonesia eyes becoming key player in electric vehicle industry

Jakarta (ANTARA) - With President Joko Widodo (Jokowi) and Vice President Ma'ruf Amin marking a year of administration, Indonesia seeks becoming a major player in producing electric vehicles, as the automotive world has changed drastically with their presence.

"Indonesia does not want to become a mere consumer, but it is determined to become a major player. The ecosystem is being readied," as cited from the 2020 Yearly Report Book, Jokowi-Ma'ruf One Year Anniversary: Rise for Onward Indonesia in Jakarta, Tuesday.

The book highlighted that one of the measures adopted comprise accelerating the development of New and Renewable Energy-based power plants, such as hydroelectric power (PLTA), solar power, and geothermal energy.

The government remains poised to achieve its target of increasing the share of new and renewable energy in its energy mix-use by 23 percent by 2025, which is fairly optimistic as compared to this year's achievement of under 15 percent.

Its efforts to realize the production of electric vehicles were initiated at a limited meeting held in January 2019 to map out opportunities for Indonesia to become a player in the Electric Vehicle Industry since the country has abundant nickel, cobalt, and manganese resources as raw materials for manufacturing batteries, including those of electric vehicles.

Presidential Regulation Number 55 of 2019 on Acceleration of the Battery Electric Vehicle Program for Road Transportation was issued in August 2019. Electric vehicles are believed to be one of the solutions to reducing the use of fossil fuel and maintaining air quality.

This was followed by Government Regulation Number 73 of 2019 on Taxable Goods classified as luxury items in the form of motorized vehicles that are subject to the Sales Tax on Luxury Goods (PPnBM).

In the fourth part of the regulation, the government regulated the PPnBM rate for four-wheeled motorized vehicles utilizing the Plug-In Hybrid Electric Vehicles (PHEV) technology, Battery Electric Vehicles (BEV), or Fuel Cell Electric Vehicles (FCEV).

For this group of vehicles, the government has set a tariff of 15 percent, with a tax base of 0 percent of the selling price, given that fuel consumption is equivalent to more than 28 kilometers per liter, or CO2 emission levels of up to 100 grams per kilometer.

A series of rules were then translated through four ministerial regulations, including Minister of Transportation Regulation Number 45 of 2020 on Certain Vehicles Using Electric Motor Drives.

They comprise Minister of Energy and Mineral Resources (ESDM) Regulation Number 13 of 2020 on the Provision of Electricity Charging Infrastructure for Battery-Based Electric Motor Vehicles (BEV) and Regulation of the Home Affairs Minister Number 8 of 2020 on Basic Calculations for Imposing Motor Vehicle Taxes and Transfer of Motor Vehicle Title Fees.

Moreover, Minister of Industry (Permenperin) Regulation Number 27 of 2020 concerns Specifications, Development Roadmap, and Provisions for Calculating Domestic Component Levels of Domestic Motor Vehicles for BEV.

Finally, Permenperin Number 8 of 2020 concerns BEV in a Completely Knock Down and Incompletely Knock Down State.

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