Who here is ready to switch to electric cars? If you're one of them, there's super exciting news that the government has just announced! Yup, you heard it right! The Indonesian government has officially waived the Sales Tax on Luxury Goods (STLG) for imported electric cars!

What is PPnBM?

Before we go any further, let's talk a little bit about PPnBM. Sales Tax on Luxury Goods (STLG) is a tax imposed on luxury goods, including cars. Well, with this exemption, the price of imported electric cars will become more affordable! Who wouldn't want that, right?

With this tax exemption, the price of imported electric cars will become more affordable, thus opening up opportunities for more people to switch to electric vehicles. It's not just about saving money, but also about contributing to a better environment.

Based on the Minister of Investment and Downstreaming Regulation No. 1 of 2024, these incentives include:

  1. Duty Free: Imported electric cars will not be subject to import duties, making the price more competitive.
  2. Government-Borne STLG: For electric cars assembled in Indonesia, the government will bear the STLG. This applies to CBU (Completely Built Up) and CKD (Completely Knock Down) electric cars with 20% to 40% local content.

There are conditions that must be met by companies that want to get this incentive, such as committing to assemble electric cars domestically and having international agreements with Indonesia, such as ACFTA or IJEPA.

With this policy, the electric car market in Indonesia is predicted to be even more crowded. New brands, especially from China, are expected to take advantage of this opportunity to enter the Indonesian market. This means more choices for consumers and healthier competition in the automotive industry. Some of the brands that have shown readiness to contribute are:

  1. Chery: The brand has launched several attractive electric car models, such as the Chery EQ1, which offers a modern design and high efficiency. With the PPnBM exemption, Chery plans to offer more competitive prices in the Indonesian market.
  2. BYD: As one of the largest electric car manufacturers in the world, BYD has prepared various models, including the BYD Han and BYD Dolphin, which are known for their advanced battery technology and impressive performance. BYD's presence in Indonesia is expected to provide more choices for consumers.
  3. MG (Morris Garages)The brand has seen significant price reductions on its electric car models, particularly the MG ZS EV. Previously, the price of the MG ZS EV was around Rp 600 million, but after price adjustments and with government incentives, the price of the car has now dropped to around Rp 500 million. This price reduction makes the MG ZS EV more affordable for consumers, and with the PPnBM exemption, MG has the potential to attract more buyers in the Indonesian market. In addition, MG is also committed to improving its after-sales service and distribution network, further enhancing its appeal to potential buyers. ..

Automotive companies that invest in electric car manufacturing facilities in Indonesia will benefit greatly from this incentive, while consumers will benefit from more affordable prices, so more people will have access to more environmentally friendly and efficient electric cars.

The PPnBM exemption for imported electric cars is a strategic move that not only supports the automotive industry, but also contributes to efforts to protect the environment. With more and more affordable electric car options, it's time to consider cleaner and more efficient vehicles. Who knows, an electric car could be your first choice in the near future!

With all these changes, we are on the verge of an automotive revolution that will not only benefit consumers, but also our planet. Imagine, cleaner streets, fresher air, and a brighter future! So, are you ready to be a part of this change? Let's welcome a new era of greener and more sustainable mobility!