- As Indonesia is speeding up its transition away from the use of fossil energy towards electrical energy, the Minister of Finance ("Minister") recently introduced a set of incentives schemes particularly for Battery-Powered Electric Motor Vehicles (“BEV”) through the issuance of Regulation of the Minister No. 8 of 2024 ("Regulation 8/2024") and Regulation of the Minister No. 9 of 2024 ("Regulation 9/2024"), which has been in force since 15 February 2024.
- Regulation 8/2024 grants value-added tax (pajak pertambahan nilai – "PPN") incentive on deliveries of certain types of four-wheeled and buses BEV which fulfills specific Domestic Component Levels (Tingkat Komponen Dalam Negeri – "TKDN") values. These include: 1) A 10% PPN of the selling price that meets the minimum 40% of TKDN value; and 2) A 5% PPN of the selling price for buses that meet the minimum 20% to 40% TKDN value.
- Meanwhile, Regulation 9/2024 provides a 100% of payable luxury-goods sales tax (pajak penjualan atas barang mewah/PPnBM) incentive for business actors that specifically engage in the importation and/or delivery of certain types of four-wheeled BEV, either in a completely built-up or completely knocked-down state.
- Director of Counseling, Services and Public Relations of the Directorate General of Taxes, Dwi Astuti, explained that the period for the above-mentioned incentives is applicable throughout the fiscal year spanning from January to December 2024. Thus, it is hoped that the public can take the most advantage of this given opportunity.
- For more on this story, see Hukumonline: “Kemenkeu Terbitkan Dua Regulasi Terkait Insentif Kendaraan Bermotor Listrik”
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