Indonesia will end tax incentives for imported battery electric vehicles (BEVs) in completely built-up (CBU) form by December 31, 2025, signaling a shift toward local assembly and production. The current scheme, introduced in early 2025, allowed automakers to import BEVs at a significantly reduced tax rate—just 12 percent compared to the usual 77 percent—on the condition they commit to future domestic manufacturing. From 2026 onward, automakers must meet local content thresholds starting at 40 percent, rising to 80 percent by 2030, to benefit from the country’s growing EV market. Major players like BYD, VinFast, and Geely have already begun investing in local facilities to comply. While the policy has accelerated EV adoption—BEVs now account for nearly 10 percent of market share—it has also sparked criticism. Domestic manufacturers and component suppliers report declining sales and factory utilization, arguing that the incentives unfairly favor importers. Academics warn that the scheme offers limited economic value, with imported BEVs dominating 64 percent of the market and contributing little to local industry development. Stakeholders urge the government to adopt a more balanced fiscal approach that supports all vehicle segments and reinforces Indonesia’s ambition to become a regional EV production hub, leveraging its vast nickel reserves for battery manufacturing.Source: https://jakartaglobe.id/business/no-more-free-ride-imported-ev-incentives-expire-on-december-31 (ICE GIACARTA)

Fonte notizia: Jakarta Globe, 27 August 2025