Jakarta – Moeldoko, the Chief of Staff to the President, expressed confidence that the Indonesian government’s new policy of providing Value Added Tax (VAT) incentives for electric vehicle purchases will play a crucial role in accelerating the development of the electric vehicle ecosystem in the country.
The move is expected to stimulate both the electric vehicle industry and market, positioning Indonesia as a key player in the global shift towards clean energy transportation.
Moeldoko’s remarks came during the soft launch of the highly anticipated Periklindo Electric Vehicle Show (PEVS) 2023, held in Jakarta on Friday (5/5). Speaking at the event, Moeldoko stressed that the VAT incentives signify the government’s commitment to keeping pace with the global energy transition towards electric vehicles, which has already gained momentum in Indonesia.
“In order to stay competitive and avoid becoming merely a market for foreign electric vehicle industries, we must work diligently and align ourselves with the current worldwide electric vehicle trend,” Moeldoko stated.
Also acting as the Chairman of the Indonesian Electric Vehicle Industry Association (Periklindo), Moeldoko called upon all stakeholders, including the government, private sector, and industries, to collaborate closely to create a robust and comprehensive electric vehicle ecosystem throughout Indonesia. Additionally, he underscored the essential role of the media in raising awareness and providing detailed education to the public regarding electric vehicles, as their understanding of this emerging technology remains relatively low.
Moeldoko highlighted the significance of the Periklindo Electric Vehicle Show (PEVS) 2023, scheduled to take place from May 17-21 at the JIEXPO Kemayoran. The event aims to serve as a catalyst for transforming the public’s perception of electric vehicles and motivating individuals to embrace this sustainable form of transportation.
The VAT incentives provided by the government are expected to incentivize consumers to invest in electric vehicles, while simultaneously urging the industry to swiftly meet the growing demand. By doing so, the gap between supply and demand will be bridged, preventing foreign industries from capitalizing on the Indonesian market.
In related news, the Indonesian government plans to raise discussions on key issues such as raw materials and the overall electric vehicle ecosystem during the upcoming 42nd ASEAN Summit. Recognizing the potential impact on Indonesia as both a major producer of electric vehicles and a country rich in battery raw materials, policymakers aim to position the nation favorably within the ASEAN region.
With the implementation of VAT incentives and the support of various stakeholders, Indonesia is poised to embrace the electric vehicle revolution, making significant strides towards sustainable and environmentally friendly transportation systems.
