The Industry Ministry is targeting to produce 600,000 units of electric cars and 2.45 million units of battery-powered motorcycles in 2030. The production target its expecting be able to reduce CO2 emissions from cars by 2.7 million tones and motorcycles by 1.1 million tones.
According to industry minister, Agus Gumiwang Kartasasmita, three local companies have built facilities to produce battery-powered electric vehicles, with a combined production capacity of 1,480 units per year. To push the production, the government is providing fiscal and non-fiscal incentives to consumers as well as manufacturers, he noted.
While, the incentives for consumers include zero percent luxury tax, a 10-percent cap on regional tax, zero percent down payment, low interest, electricity connection discount, special police number. And, for the manufacturers get tax holiday, mini tax holiday, tax allowance, import duty exemption, and super tax deduction for research, development, and demonstration.