Reported on May 6, 2025, Indonesia’s Minister of Investment and Head of the Investment Coordinating Board (BKPM) has announced enhanced incentives for EV manufacturers based on their level of local content (TKDN). The higher the TKDN, the greater the incentives provided.
Currently, 7 EV manufacturers—VinFast, Volkswa

Reported on February 6, 2025, the Indonesian Minister of Investment and Downstream Industry/Head of the Investment Coordinating Board (BKPM), during a limited meeting with the President, discussed strategies to strengthen investment in the development of the electric vehicle industry.
In addition to the foreign inves

Announced on December 16, 2024, the Indonesian government has launched the Economic Policy Package for Welfare, which also includes the automotive sector. This is in line with the implementation of Value Added Tax (VAT) rate of 12% starting January 1, 2025. 
Effective for a period of 1 year starting January 1, 2025,

Announced on December 15, 2024, the Association of Indonesian Automotive Industries (Gaikindo) pointed out that HEVs and PHEVs also have various advantages in terms of being environmentally friendly. Therefore, the government should also consider providing incentives for them, rather than focusing on BEVs only.
Accor

Reported on November 26, 2024, Indonesia’s Industry Ministry has proposed a stimulus in the form of incentives for HEVs in Indonesia. According to the Industry Minister, if the discussion process goes smoothly, the implementation of the incentives could begin in early 2025. 
This incentive plan is a continuation of t

Reported on November 19, 2024, the Minister of Investment and Downstream Industry / Head of BKPM (the Indonesian Investment Coordinating Board), on November 8, signed a new regulation regarding the import duties and Luxury Goods Sales Tax (PPnBM) borne by the government for the import of CBU electric cars, effective

On October 16, 2024, Indonesia Battery Corporation (IBC) and CBL International Development Pte. Ltd. (a subsidiary of Contemporary Amperex Technology Co., Ltd. (CATL) officially signed an agreement to establish a Joint Venture company for battery cell manufacturing.
This planned facility in Karawang is said to be ent

Reported on October 18, 2024, the Indonesian Minister of Energy and Mineral Resources said Indonesia would provide the material, known as an EV battery precursor, to the American EV manufacturer Tesla in November 2024, exported from Weda Bay.
Details on the volumes have yet to be revealed.
Previously, Indonesia has r

Announced on October 2, 2024, the Association of Indonesian Automotive Industries (Gaikindo) said the weakening of local car production is inseparable from the sluggish car sales throughout 2024.
Based on the Gaikindo’s data, local car production in August 2024 reached 107,263 units (down 14.6% YoY). Car production i

Reported on September 6, 2024, the Association of Indonesia Automotive Industries (Gaikindo) pointed out that the government's plan to ban sales of new cars with fuel engines (BBM) (gasoline / diesel BBM), or internal combustion engines (ICE) in 2045 must benefit all parties, not only the government but also industry

Reported on September 6, 2024, the Indonesian Electric Vehicle Industry Association (Periklindo) expressed support for the government's decision not to offer incentives for HEVs in 2024. 
The association said it does not support subsidies for hybrid vehicles, believing that full support should be directed towards pur

Reported on September 4, 2024, the Association of Indonesian Automotive Industries (Gaikindo) stated the need for a strategy to encourage an increase in the Purchasing Managers' Index (PMI), which continued to drop. The PMI is an economic indicator used to measure the health of the manufacturing sector or service sec

Reported on August 27, 2024, the Indonesian Minister of Industry pointed out that incentives for local HEV industry are crucial, as they can help keeping hybrid car manufacturers in Indonesia, stopping the companies from moving their HEV production to other countries.
This is based on past experiences in the 1980s, w

On August 9, Australia hosted the first Senior Officials’ Meeting under the Electric Vehicle (EV) collaboration mechanism Memorandum of Understanding (MoU), which was inked with Indonesia in 2023, in Canberra, Australia.
Under the MoU, both countries, which are partners in the clean energy transition, have committed

On August 7, 2024, the Indonesian President inaugurated the PT Indonesia BTR New Energy Material’s lithium battery anode factory located in the Kendal Special Economic Zone (KEK), Kendal Regency, Central Java Province. 
Its construction took only 10 months since the signing of agreement in Beijing, China. The factory

Announced on July 10, 2024, The Ministry of Industry, the Association of Indonesian Automotive Industries (Gaikindo), and an automotive observer at LPEM UI, held a discussion on solutions to overcome Indonesia’s car market stagnation.
Annual car sales in Indonesia have tended to remain at 1 million units in the last

Reported on June 21, 2024, the Indonesian Institute for Development of Economics and Finance (INDEF) pointed out that the government’s plan to introduce new incentives for HEVs may hinder the progress of the local BEV ecosystem.
Once the incentives are implemented, sales of hybrid cars will certainly increase. This c

Reported on June 20, 2024, Vice President of NETA Auto expressed his support for the Indonesia government’s plan of making Indonesia a RHD EV production hub for the export market, while adding that the company appreciated the Indonesian government, especially the Ministry of Industry, which has supported NETA in the

Reported on May 6, 2024, Vice President of PT Toyota Motor Manufacturing Indonesia (TMMIN) said localization of industry in Indonesia is a complex matter and many factors need to be considered. One of them is the government’s plan to increase value-added tax (VAT) to 12% in 2025.
The large number of taxes imposed in

Reported on April 30, 2024, the Indonesian Coordinating Ministry for Maritime & Investment Affairs revealed that the government has set a target for 2024 sales of electric cars to reach 50,000 units, which is an increase of almost 3 times compared to around 17,000 EVs sold in 2023.
Local EV sales are currently suppor