Import facilities can be granted to businesses that import Electric Vehicles (only four-wheelers) under the Completely Built Up (CBU) and Completely Knock Down (CKD) schemes.

The import facilities provided include:

(1)   0% Import Duty Exemption

(2)   Luxury Goods Sales Tax (PPnBM) borne by the Indonesian Government

The utilization of these facilities is available from February 15, 2024, until December 31, 2025, with the deadline for submitting facility requests to the Indonesian government being March 1, 2025.

Since the issuance of this regulation, several vehicle brands (CBU) have already received facilities from the Indonesian government, including:

Ø  PT BYD Motor Indonesia (BYD): Currently markets three models: Dolphin Atto 3 and Seal.

Ø  PT Indomobil National Distributor (Citroen): Currently, there is only one model being marketed, the E-C3 All Electric

Ø  PT Indomobil Energi Baru (GAC Aion): Currently, only one model is being marketed, the Aion Y Plus.

Ø  PT VinFast Automobile Indonesia (VinFast) : Currently markets two models: VFe34 and VF5.

The list of electric vehicle manufacturers above will continue to grow, especially as the Indonesian government is currently drafting regulations for hybrid vehicle incentives.

To obtain electric vehicle import facilities, the manufacturer must establish a legal entity in Indonesia with a business focus on vehicle manufacturing. The following steps must then be taken:

1.      Submit a request letter for the Proposed Import Incentive.

2.      Present the company’s business plan and investment plan, with the condition that it must be commercially viable by the end of 2026.

3.      Submit an import plan for each period (every 6 months).

4.      Provide a Bank Guarantee to the Indonesian government with an amount equivalent to the import facility granted.

5.      Once the above steps are fulfilled, the company will be granted a CBU import facility for the initial period of 6 months.

However, to sell vehicles in Indonesia, the vehicles must pass tests according to the applicable standards in Indonesia. If your company intends to sell vehicle products in Indonesia and needs services to meet the standard testing requirements, please contact us at Mylegal. We have extensive experience in handling vehicle permits in Indonesia.