Finance Minister: Indonesian EV Industry Gets Many Fiscal Incentives

By Editorial Team 24/03/2023
Gesits assembling factory
Summary

Finance Minister Sri Mulyani claimed that the Indonesian government had provided many fiscal incentives to strengthen the battery-based electric vehicle (KBLBB) ecosystem for relevant mineral miners, electric vehicle producers, to component manufacturers.

"There are fiscal [incentives] to strengthen the KBLBB ecosystem. First, the 20-year tax holiday, according to the investment value for the main component industry, the integrated steel and its sub-product industries, smelters and battery factories," she elaborated.

There is also a super tax deduction of up to 300 percent on research and development costs in battery-based power generation and electrical equipment. "VAT [or value-added tax] is exempted from mining goods, including nickel ore as a raw material for batteries," she added.

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