JAKARTA, Dec. 17 (Xinhua) -- Indonesia will not extend incentives for completely built-up (CBU) electric vehicle (EV) imports beyond 2025, as the government plans to redirect budgetary support toward the development of a national car program, a senior minister said.
Coordinating Minister for Economic Affairs Airlangga Hartarto said on Tuesday that the incentive scheme will expire on Dec. 31, 2025, and will not be renewed, as the government shifts its focus to revitalizing the domestic automotive industry and attracting long-term investment.
The incentives include a reduction in import duties on CBU electric vehicles to zero percent from the original rate of 50 percent.
Launched in February 2024, the program has been joined by six companies. Under the scheme, participating manufacturers are required to produce electric vehicles domestically in line with Indonesia's local content requirements, with production volumes matching their levels of CBU imports.
Airlangga added that automakers that have benefited from the incentives are expected to honor their commitments by investing in and establishing manufacturing facilities in Indonesia. ■