Indonesia is making significant strides in promoting the adoption of electric cars, driven by a commitment to environmental sustainability and energy sovereignty. The cornerstone of this initiative is Presidential Rule Number 55 of 2019, commonly referred to as "Perpres Mobil Listrik" (Presidential Rule Concerning Electric Cars).
The regulation places a strong emphasis on the use of local components in electric vehicles (EVs). For two and three-wheeled EVs, there's a mandate to incorporate at least 40% local components by 2023, increasing to 60% by 2024 and 80% from 2026 onwards. Similarly, four-wheeled EVs must adhere to a minimum of 35% local components until 2021, 40% until 2023, 60% until 2029, and 80% from 2030 onwards.
Article 16 signals the government's commitment to phase out fossil fuel-powered vehicles, aligning with its broader environmental goals. Perpres Mobil Listrik also introduces a range of incentives for EV users, encompassing both fiscal and non-fiscal benefits. Fiscal incentives outlined in Article 19 include tax removal or discounts, special parking tariffs, and charging fee reductions, among others. Meanwhile, Article 20 grants non-fiscal incentives such as exemption from certain vehicle bans, notably the odd-even license plate system in Jakarta.
Charging infrastructure is a pivotal aspect of EV development, and Perpres Mobil Listrik addresses this by defining public and private charging stations in Article 22. Public charging stations are mandated to be available at gas stations, government offices, shopping centers, and public parking spaces. Private charging stations are also allowed in government offices and residential areas, highlighting the government's commitment to facilitating convenient access to charging infrastructure.
Despite being a relatively new regulation, Perpres Mobil Listrik reflects Indonesia's proactive stance towards fostering a conducive environment for the production and operation of electric cars. The incentives provided for EV users, coupled with the commitment to local components and the development of charging infrastructure, position Indonesia as a promising hub for electric mobility in the region.
Source: CFDS
