More Flexibility for Four-Wheeled BEV Industries: Amendment of Import Incentive Approvals Now Available

In 2023, the Minister of Investment/Head of the Investment Coordinating Board (Badan Koordinasi Penanaman Modal – “BKPM”) introduced Regulation No. 6 of 2023 on Guidelines for and the Governance of the Provision of Incentives for Imports and/or Deliveries of Four-Wheeled, Battery-Powered, Electric Motor Vehicles in Order to Accelerate Investment (“Regulation 6/2023”). As its title suggests, this framework outlines the applicable criteria and requirements that have to be met by manufacturers of four-wheeled, battery-powered, electric motor vehicles (“BEV”) in order to secure incentives in the form of subsidized import duties and luxury goods sales tax (Pajak Penjualan atas Barang Mewah – “PPnBM”).