Investor Presentaiton
Indonesia Electric Vehicle Outlook 2023
Fiscal policy is the most feasible and effective, but it can be strengthened
• Since the issuance of the Presidential Regulation for the acceleration of BEV adoption in 2019, there have been various supporting policies and regulations issued by
the government. While fiscal incentives are needed to reduce the price gap between EV and ICEV to accelerate adoption, they are limited to exemptions from luxury
tax (PPNBM), title transfer and ownership fee (BBNKB), and vehicle tax (PKB). Recently, the government included the exemption of EVs from BBNKB and PKB taxes in
the Law No. 1/2022, although it will only take effect in 2025. Furthermore, the government is yet to introduce additional disincentives for ICEVS aside from the existing
PPNBM scheme.
• In 2022, the government issued three non-fiscal policies to support EVs. The first policy is the instruction to adopt EVs as government's official vehicles. The second
one is the regulation to expand ICEV to EV conversions beyond 2W segment, complementing the 2020's E2W conversion policy. Lastly, to support the local component
manufacturers, the Ministry of Industry (Mol) also issued a regulation on technical requirements, the national EV roadmap, and the local content requirement (LCR)
guidelines.
National Policy
Existing non-fiscal policies
Existing fiscal policies
• MOT Reg. No. 15/2022: Regulate the conversion of other than 2W vehicles.
• Mol Reg. No. 6/2022: Technical requirements and LCR guideline.
• Presidential Instruction No. 7/2022: Adoption for government official vehicle
⚫ MEMR Reg. No. 13/2020: Standardization of charging plugs and electricity
tariff policy for public electric vehicle charging station and public electric
battery vehicle replacement.
⚫ MOT Reg. 44/2020: EV testing and certification process.
⚫ MOT Reg. No. 45/2020: Regulates special vehicle with electrical motor
including safety requirement, riding behaviour, and vehicle lane.
⚫ MOT Reg. No. 65/2020: Legitimates the conversion of 2W to E2W, and
regulates the component of conversion vehicle, requirement to convert to
conversion shop for Small Medium Enterprises (SME) workshop, along with
safety requirements and administration process.
⚫ Law No. 1/2022: BBNKB and PKB exemption starting in 2025.
⚫ OJK (Otoritas Jasa Keuangan) Circulation:
Risk Weighted Assets (RWA/ATMR) for EV financing (producing and
buying) is reduced from 75% to 50%.
EV credit purchase payment could cost 0% (without down payment).
⚫ Government Reg. No. 74/2021: Battery electric vehicle (BEV) is exempted from
sales tax on luxury goods (PPnBM).
⚫ Ministry of Home Affair (MOHA) Reg. No. 1/2021: BEV maximum yearly tax
(PKB) and title transfer fee (BBNKB) is only 10% of its imposition fee calculation.
⚫ MoF Reg. 138/PMK.02/2021: Vehicle Type Test cost for BEV is cheaper than
ICEV; IDR 4.5 million for E2W, IDR 13.2 million for E4W and E-bus.
Type Test Certification (Sertifikat Uji Tipe/SUT) for E2W is 25 times cheaper,
while for E4W and E-bus is 6 times cheaper than ICEV.
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