The Indonesian Government revised the target value for the domestic component level (TKDN) in the assembly of battery-based electric vehicles (KBLBB) to attract more investment and accelerate the KBLBB market in Indonesia.
Director of the Maritime Industry for Transportation Equipment and Defense Equipment at the Ministry of Industry Hendro Martono stated in a press conference here Friday that calculation of the minimum TKDN value of 40 percent, earlier set until 2024, will be extended to 2026. Furthermore, the TKDN composition will increase to a minimum of 60 percent during the 2027-2029 period and a minimum of 80 percent in 2030 and thereafter.
Based on the calculation, the TKDN weight for supporting components remains at 10 percent. Meanwhile, the TKDN weight for development and research activities will be reduced, from 20 percent to 10 percent in 2030, he stated. On the other hand, the TKDN weight for assembly components increased, from 10 percent to 20 percent.
In addition, the government provides various incentives for the electric vehicle industry, including tax holidays, or corporate income tax exemptions for companies producing KBLBB. Moreover, a tax allowance or reduction in corporate income tax is provided for companies investing in the KBLBB industry and a zero percent import duty incentive for imports of KBLBB components, he elaborated. Incentives are also given to consumers who buy two-wheeled electric vehicles in the form of a discount of Rp7 million per unit.
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March 04, 2024
