Indonesia’s Finance Ministry is reviewing a tax incentive package to encourage electric vehicle (EV) manufacturers to adopt nickel-based batteries over lithium alternatives. The proposal, assessed by the Fiscal Policy Agency, may include government-borne VAT, import duty exemptions, and luxury goods tax relief for both EVs and battery components. Nickel-based batteries, such as NMC and NCA types, offer higher energy density and longer driving ranges, making them ideal for mid- to high-end EVs. By promoting these technologies, the government aims to leverage Indonesia’s position as the holder of 52% of the world’s nickel reserves and boost its domestic battery production and refining capacity. This initiative is part of a broader industrial strategy under President Prabowo’s priority agenda, which also includes expanding the biodiesel program, subsidized housing finance, data center development, and coastal protection infrastructure. Since banning raw nickel exports in 2020, Indonesia has seen a surge in nickel-based product exports, reaching $33.9 billion in 2024. With global EV demand rising sharply, the country seeks to attract investment and solidify its role in the global EV supply chain by aligning its natural resource advantages with strategic policy incentives.Source: https://jakartaglobe.id/business/indonesia-weighs-tax-incentives-to-promote-nickelbased-ev-batteries (ICE GIACARTA)

Fonte notizia: Jakarta Globe, 7 August 2025