Government-Borne PPnBM for Electric Cars for 2024 Period Clarified

The Indonesian Government is currently working to hasten the progress of the country’s ongoing energy transition, which includes an accelerated move towards the use of Battery-Powered Electric Vehicles (“BEV”), as originally addressed under the framework of Regulation No. 55 of 2019 on the Acceleration of the Battery-Powered Electric Vehicles (“BEV”) Program and its Amendment (collectively referred to as “Regulation 55/2019”).[1] This framework addresses various arrangements for different BEV types, eligibilities and industries, including mandates that address fiscal incentives that will be provided by the government in the form of government-borne Luxury Goods Sales Tax (Pajak Penjualan atas Barang Mewah – “PPnBM”) on imports and/or deliveries of taxable goods that are classified as luxury goods in the form of certain four-wheeled BEV.

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