The Minister of Industry revealed that Chinese automakers will enjoy multiple preferential policies provided by the Indonesian government for the automotive industry, including PPnBM incentives borne by the government and exemption from import duties. The Coordinating Minister for Economic Affairs stated that in addition to PPnBM DTP incentives, some vehicles will also enjoy VAT DTP incentives to encourage domestic purchasing power. Currently, the automotive industry is experiencing low sales due to declining purchasing power of the middle class. This government move aims to stimulate both demand and supply. The Minister of Finance requested hybrid vehicle manufacturers to register in time to enjoy incentives starting January 1, 2024. This program is regulated by the Minister of Industry Regulation, which stipulates the TKDN value as participation criteria. In 2024, three companies—BYD, Citroën, and GAC AION—committed to building automotive production facilities in Indonesia and will enjoy zero import tariffs and 15% PPnBM DTP. The government aims to demonstrate the competitiveness of Indonesian regulations and help Indonesia become a production hub for KBLBB in ASEAN.
The Minister of Industry revealed that Chinese automakers will enjoy multiple preferential policies provided by the Indonesian government for the automotive industry, including PPnBM incentives borne by the government and exemption from import duties. The Coordinating Minister for Economic Affairs stated that in addition to PPnBM DTP incentives, some vehicles will also enjoy VAT DTP incentives to encourage domestic purchasing power. Currently, the automotive industry is experiencing low sales due to declining purchasing power of the middle class. This government move aims to stimulate both demand and supply. The Minister of Finance requested hybrid vehicle manufacturers to register in time to enjoy incentives starting January 1, 2024. This program is regulated by the Minister of Industry Regulation, which stipulates the TKDN value as participation criteria. In 2024, three companies—BYD, Citroën, and GAC AION—committed to building automotive production facilities in Indonesia and will enjoy zero import tariffs and 15% PPnBM DTP. The government aims to demonstrate the competitiveness of Indonesian regulations and help Indonesia become a production hub for KBLBB in ASEAN.