Indonesia imposes duty-free imports on electric vehicle parts hinh anh 1President Joko Widodo attends the launch of the Development Collaboration of Electric Vehicle Ecosystem at the MT Haryono gas station in Jakarta on February 22, 2022. (Photo: Presidential Secretariat Bureau)
Jakarta (VNA) - The Indonesian Government has imposed duty free policy on incompletely knocked down (IKD) electric vehicle (EV) imports.

This policy is hoped to turn Indonesia into a hub for electric vehicle production and exports, said the Finance Ministry’s head of fiscal policies, Febrio Kacaribu, on March 4.

Febrio said this incentive coincides with the country’s roadmap for electric development and its main components such as electrical motors, batteries, and converters.

Based on the electrification roadmap, the production of cars and motorcycles including low carbon emission vehicles (LCEV) in 2020 is targeted at 10 percent each, which is expected to increase to 20 percent by 2025.

This year, the government targets the electric car exports to reach 250,000 units, and hopes to see the number grow to 310,000 units in 2025.

Meanwhile, electric motorcycle exports this year are targeted to be 750,000 units, and increase to 1.1 million units in 2025./.