The Indonesian government confirms its commitment related to the development of battery-based EV batteries which are certain to continue even in the midst of the COVID-19 pandemic. Deputy for Infrastructure and Transportation Coordinating Ministry of Maritime Affairs and Investment, Ridwan Djamaluddin said that the government was very serious about developing battery-based electric vehicles to sustain environmental, economic and independence aspects.
"The government strongly encourages the maximum development of battery-based electric vehicles by issuing a number of regulations," he said in the Harmonisation Electric Vehicle Regulation webinar.
He gave an example of the Ministry of BUMN, for example, has prepared a work plan that manages mining materials to become a battery producer or build a Public Electric Provider Station (SPLU). In addition to the Ministry of SOEs, said Ridwan, ministries and other relevant institutions also continue to build commitment through technical regulations for the development of electric vehicles.
"There is a Ministerial Regulation (Permen) of the Ministry of Energy and Mineral Resources regulating electricity tariffs, there is a Ministerial Regulation of the Ministry of Environment and Forests regulating the handling of battery waste, Minister of Transportation's Regulation, Minister of Home Affairs Minister's Regulation, Minister of Finance's Ministerial Regulation, to National Standardization Agency regulations," he said.
Putu Juli Ardika, Director of Maritime Industry, Transportation Equipment, and Defense Equipment (IMATAP) of the Ministry of Industry, said the acceleration of the development of the motor vehicle industry has not changed, despite the current COVID-19 pandemic.
"Although there is a COVID-19 pandemic, the roadmap for the development of the electric motor vehicle industry has not changed, this is the commitment of the motor vehicle manufacturers. This includes exports," Putu said.
Based on the road map, car and motorcycle production including low carbon emission vehicles (LCEV) in 2020 is targeted at 10 percent each, and will increase to 20 percent in 2025. By the end of 2022, the production phase for all vehicle segments had entered the assembly line intact, except for commercial segments such as buses and trucks that had advanced to the IKD (incompletely knock down) stage. This means that there are a number of main components of vehicles that can already be produced domestically.
Putu said the government had provided a number of incentives to accelerate the electrified vehicle programme, both in the form of fiscal and non-fiscal incentives, which could be enjoyed by manufacturers and consumers.
For consumers, incentives are provided in the form of taxation, credit facilities for ownership of electric vehicles, to costs related to electricity. Among brand holder agents also provide various electric vehicle promos. As for manufacturers, the government provides incentives in the form of tax holidays, tax allowances, exemption from import duties, government borne import duties, tax deduction and investment allowance.