Global Trade Alert
Global Trade Alert

Indonesia: Government provided fiscal incentives for the importation of and changed the local content requirements for the manufacturing of electric vehicles

Announcement

08 Dec 2023

In December 2023, the government of Indonesia provided fiscal incentives for the importation of and changed the local content requirements for the manufacturing of electric vehicles.

Source

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Number of interventions

11

4 certainly harmful

0 likely harmful

7 liberalising

List of interventions

Implementation date

01 Jan 2030

Revocation date:

No revocation date

Announced: 08 Dec 2023
Local content requirement
On 8 December 2023, the government of Indonesia issued Presidential Regulation No.79/2023, increasing local content requirements from 60% to 80% for two- and three-wheel electric vehicle manufacturer...
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Implementation date

01 Jan 2027

Revocation date:

31 Dec 2029

Announced: 08 Dec 2023
Local content requirement
On 8 December 2023, the government of Indonesia issued Presidential Regulation No.79/2023, increasing local content requirements from 40% to 60% for four-wheel or more electric vehicle manufacturers....
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Implementation date

01 Jan 2027

Revocation date:

31 Dec 2029

Announced: 08 Dec 2023
Local content requirement
On 8 December 2023, the government of Indonesia issued Presidential Regulation No.79/2023, reducing local content requirements from 80% to 60% for two- and three-wheel electric vehicle manufacturers....
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Implementation date

01 Jan 2026

Revocation date:

31 Dec 2026

Announced: 08 Dec 2023
Local content requirement In force
On 8 December 2023, the government of Indonesia issued Presidential Regulation No.79/2023, reducing local content requirements from 80% to 40% for two- and three-wheel electric vehicle manufacturers....
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Implementation date

01 Jan 2024

Revocation date:

31 Dec 2025

Announced: 08 Dec 2023
Local content requirement
On 8 December 2023, the government of Indonesia issued Presidential Regulation No.79/2023, reducing local content requirements from 60% to 40% for two- and three-wheel electric vehicle manufacturers....
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Implementation date

01 Jan 2024

Revocation date:

31 Dec 2026

Announced: 08 Dec 2023
Local content requirement In force
On 8 December 2023, the government of Indonesia issued Presidential Regulation No.79/2023, reducing local content requirements from 60% to 40% for four-wheel or more electric vehicle manufacturers. T...
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Implementation date

08 Dec 2023

Revocation date:

No revocation date

Announced: 08 Dec 2023
Tax or social insurance relief In force
On 8 December 2023, the government of Indonesia issued Presidential Regulation No.79/2023, granting a tax concession to electric vehicle manufacturers in Indonesia in the form of import duty exemption...
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Implementation date

08 Dec 2023

Revocation date:

No revocation date

Announced: 08 Dec 2023
Import tariff In force
On 8 December 2023, the government of Indonesia issued Presidential Regulation No.79/2023, exempting import duties on machinery and raw materials for electric vehicle manufacturers in Indonesia. The m...
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Implementation date

08 Dec 2023

Revocation date:

31 Dec 2025

Announced: 08 Dec 2023
Internal taxation of imports
On 8 December 2023, the government of Indonesia issued Presidential Regulation No.79/2023, exempting VAT on Luxury Goods (PPNBM) and progressive car tax (PPKB) on the importation of completely-build u...
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Announced: 08 Dec 2023
Import tariff
On 8 December 2023, the government of Indonesia issued Presidential Regulation No.79/2023, exempting import duties on completely-build up (CBU) electric vehicles for investors who built manufacturing ...
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Implementation date

08 Dec 2023

Revocation date:

31 Dec 2025

Announced: 08 Dec 2023
Local operations incentive
On 8 December 2023, the government of Indonesia issued Presidential Regulation No.79/2023, providing incentives for investors who built manufacturing plants of electric vehicles in Indonesia in the fo...
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