BYD and EAN receive several tax incentives from Indonesian government

The Minister of Industry revealed that Chinese automakers will enjoy a number of incentives offered by the Indonesian government for the automotive sector, including PPnBM incentives borne by the government and exemptions from import tariffs.The Coordinating Minister for the Economy said that in addition to PPnBM DTP incentives, some cars will also enjoy VAT DTP incentives to encourage domestic purchasing power. The government's move is aimed at stimulating both demand and supply in the current auto sector where sales are low due to declining purchasing power of the middle class. The finance minister has asked hybrid vehicle manufacturers to register in time to benefit from the incentives from January 1, 2024, which is regulated by the industry minister's regulation that stipulates the TKDN value as a participation criterion. 2024 BYD, Citroën, and GAC AION are three companies that have committed to build automotive production facilities in Indonesia, and they will benefit from zero import tariffs and a 15% PPnBM DTP. the government. The move is intended to highlight the competitiveness of Indonesia's regulations and help Indonesia become an ASEAN KBLBB production center.