INDONESIA will offer tax incentives to manufacturers including China's BYD and GAC Aion, as well as French automaker Citroen, in to boost domestic electric vehicle (EV) production and sales, reports Hong Kong's South China Morning Post.
The three carmakers, all of which have committed to building factories in Indonesia, will enjoy an exemption on import taxes and a 15 per cent rate on the local luxury sales tax, known as PPnBM, Agus Gumiwang Kartasasmita, said Indonesia's Minister of Industry.
The move, which will take effect next month, showcases Indonesia's competitive regulatory environment to global investors and carmakers, Mr Agus said, adding that it is in line with the government's effort to make indonesia a production hub for four-wheeled battery-driven EVs in the Asean region.
Southeast Asia's largest economy has set ambitious plans to build out a domestic EV industry, taking advantage of its rich reserves of nickel, a key ingredient for EV batteries. The government has been offering incentives such as tax breaks to lure EV-related investment from around the world.
This includes the country's first EV battery plant, a US$1.1 billion factory opened by Korean tech giants Hyundai and LG earlier this year.
SeaNews Turkey
The three carmakers, all of which have committed to building factories in Indonesia, will enjoy an exemption on import taxes and a 15 per cent rate on the local luxury sales tax, known as PPnBM, Agus Gumiwang Kartasasmita, said Indonesia's Minister of Industry.
The move, which will take effect next month, showcases Indonesia's competitive regulatory environment to global investors and carmakers, Mr Agus said, adding that it is in line with the government's effort to make indonesia a production hub for four-wheeled battery-driven EVs in the Asean region.
Southeast Asia's largest economy has set ambitious plans to build out a domestic EV industry, taking advantage of its rich reserves of nickel, a key ingredient for EV batteries. The government has been offering incentives such as tax breaks to lure EV-related investment from around the world.
This includes the country's first EV battery plant, a US$1.1 billion factory opened by Korean tech giants Hyundai and LG earlier this year.
SeaNews Turkey