The Electric Vehicle (EV) industry gets a boost with revised domestic component levels to spur investment and growth

Source: Press conference to disseminate information on incentives for accelerating investment in battery-based electric motorized vehicles in Jakarta on Friday, 1st March 2024. (Photo: ANTARA/Shofi Ayudiana/rst)

IN a move to stimulate investment and propel the electric vehicle (EV) market forward, the Indonesian government has revised the target values for the domestic component level (TKDN) in the assembly of battery-based electric vehicles (KBLBB).

Bapak Hendro Martono, Director of the Maritime Industry for Transportation Equipment and Defense Equipment at the Ministry of Industry, announced during a press conference on 1st March 2024 that the minimum TKDN value of 40 percent, initially set until 2024, would now extend to 2026.

Under the revised plan, the TKDN composition will progressively increase to a minimum of 60 percent during the 2027-2029 period and a minimum of 80 percent from 2030 onwards.

Bapak Martono further detailed that the TKDN calculation for electric vehicles will see the main components requiring a TKDN of 50 percent by 2029, escalating to 60 percent by 2030.

The recalibration of TKDN weights is part of a strategic three-stage approach aimed at fostering the growth of the KBLBB industry, starting with market creation until 2026, followed by industrial penetration in the 2027-2029 period, and finally, industrial deepening in 2030.

To facilitate industry players in achieving the revised TKDN targets, the government has introduced various incentives, including tax holidays, tax allowances, and import duty waivers for KBLBB manufacturers and investors.

Consumers are also set to benefit from incentives, with discounts offered on the purchase of two-wheeled electric vehicles as part of the government’s broader efforts to promote sustainable transportation solutions and reduce carbon emissions.

Source: Antara News