With consideration to provide direction, foundation, and legal certainty in the implementation of the acceleration of the battery-based electric motor vehicle program for road transportation, the government considers the need for arrangements that support the acceleration of the battery-based electric motor vehicle program for road transportation.
Based on these considerations, on August 8, 2019, President Joko Widodo signed the Presidential Regulation (President Decree) Number 55 of 2019 concerning the Battery Electric Vehicle Program for Road Transportation.
In this President Decree, it is stated, the acceleration of the Battery-Based Electric Vehicle, Battery-based program for road transportation is carried out through: a. accelerating the development of the domestic Battery-based EV industry; b. giving incentives; c. providing electricity charging infrastructure and regulating electricity tariffs for EV- Battery-Based; d. compliance with the technical provisions of EV- Battery Based; and e. protection of the environment.
The acceleration of the development of the Battery Based RV industry as referred to, according to this Regulation, is carried out through the activities of the Battery Based EV industry or the Battery Based EV component industry.
"The two-wheeled and four-wheeled or more motorized vehicle industry and the motor vehicle component industry which already have industrial business licenses and manufacturing and assembly facilities can follow the Battery-based EV acceleration program for road transportation," reads Article 5 paragraph (2) of this Presidential Regulation.
Battery-based EV industrial company and / or Battery-based EV component industrial company in conducting Battery-Based EV industrial activities and / or Battery-based EV component industry as intended, according to this President Decree, must build Battery-based EV manufacturing facilities in the country that can be done alone or through production cooperation with other industrial companies.
In addition, this President Decree emphasized that domestic vehicle component manufacturing companies and / or battery-based EV component industry companies must support and cooperate with the domestic battery-based EV industry.
Domestic Component Level
According to this regulation, the Battery-Based EV Industry and the Battery-Based EV component industry are required to prioritize the use of the Domestic Component Level (TKDN) with the following criteria:
- for EV Battery Based on two-wheeled and / or three levels of use of domestic components as follows: 1) in 2019-2023, TKDN minimum of 40% (forty percent); 2) in 2024 - 2025, the minimum TKDN is 60% (sixty percent); and 3) in 2026 onwards, the minimum TKDN is 80% (eighty percent),
- for EV Battery Based wheeled four or more levels of use of domestic components as follows: 1) 2019-2021, TKDN minimum of 35% (thirty-five percent); 2) in 2022 - 2023, minimum TKDN is 40% (forty percent); 3) in 2024 - 2029, the minimum TKDN is 60% (sixty percent); and 4) In 2030 and so on, TKDN is a minimum of 80% (eighty percent)
Regarding the production of Battery-Based EVs carried out by EV Battery-based industrial companies, according to this President Decree, is a company that: a. established under Indonesian law and operating in the territory of the Unitary Republic of Indonesia; and b. has an industrial business license to assemble or produce Battery Based EV.
While the production of EV Battery-based components is carried out by the EV Battery-based component industry company, according to this President Decree, it is a company that: a. established under Indonesian law and operating in the territory of the Unitary Republic of Indonesia; and b. has an industrial business license to assemble or produce main components and / or supporting components for EV Battery Based in accordance with statutory provisions.
"In the event that the EV Battery-based component industry has not been able to produce the main components and / or supporting components of the Battery-Based EV, the Battery-Based EV industry can procure components originating from the import type: a. incomplete decomposition (Incompletely Knock Down / IKD); and / or b. Completely Knock Down (CKD), " reads Article 11 paragraph (1) of this Presidential Regulation.
While in the case of the EV Battery-based component industry has not been able to produce the main components and / or supporting components of the Battery-Based EV, according to this Regulation, the Battery-Based EV component industry can procure components that are imported from incomplete decomposed state types (Incompletely Knock Down / IKD ).
This regulation states that, in the context of accelerating the implementation of the Battery-Based EV program, the Battery-Based EV industry that will build a battery-based EV manufacturing facility in the country can procure a Battery-Based EV that comes from imports in a complete condition (Completely Built-Up / CBU).
"Imports as intended may only be carried out within a certain period and a certain amount since the start of the construction of the Battery Based EV manufacturing facility," reads Article 12 paragraph (2) of this President Decree.
According to this regulation, the EV National Battery-Based Industrial company is a company: a. that uses domestic Battery-Based EV components that meet the TKDN criteria; b. domestic investment that can be provided with additional fiscal incentives determined by the minister who carries out government affairs in the field of state finance and additional non-fiscal incentives determined by the relevant ministers after receiving input from the Coordination Team for the acceleration of the Battery-Based EV program; and c. conducting research and / or technology innovation in the battery-based EV industry in the country.
"The National EV Battery-Based industrial company referred to as those who build manufacturing facilities and assembly of EV Battery-Based in Indonesia can be given additional facilities," said Article 15 of this President Decree.
This regulation also mentions, the Central Government and Local Governments provide incentives in the form of fiscal incentives and non-fiscal incentives to accelerate the Battery-Based EV program for road transportation.
In addition, this Regulation states, the Battery-Based EV industry that will build a Battery-Based EV manufacturing facility in the country can be given incentives in accordance with statutory provisions.
The fiscal incentives referred to may be in the form of: a. import duty incentives for importing Battery-Based EV in Completely Knock Down (CKD), Battery-Based EV in Incompletely Knock Down (IKD), or major components for a certain number and period of time; b. sales tax incentives for luxury goods; c. incentives for exemption or reduction of central and regional taxes; d. incentive of import duty on the importation of machinery, goods, and materials in the context of investment; e. suspension of import duties in the framework of export; f. incentives for import duties borne by the government for the importation of raw materials and / or supporting materials used in the framework of the production process; g. incentive for making SPKLU equipment, h. export financing incentives; i. fiscal incentives for research, development and technological innovation activities as well as vocational components of the Battery-Based EV; j. parking fees at locations determined by the Regional Government; k. reduction of electricity charging fees at SPKLU; l. financial support for SPKLU infrastructure development; m. professional competency certification for the EV battery-based industrial human resources; and n. product certification and / or technical standards for the EV Battery-based industrial company and the EV Battery-based component industry.
"The granting of incentives for exemption or reduction of regional taxes as referred to in the form of Motorized Vehicle Tax (PKB) and Motorized Vehicle Transfer Fee (BBNKB) is further regulated in ministerial regulations conducting domestic government affairs," reads Article 19 paragraph (3) of this President Decree.
The non-fiscal incentives referred to may be in the form of: a. exemption from restrictions on the use of certain roads; b. devolution of production rights over technology related to Battery-Based EV whose patent license has been held by the Central Government and / or Regional Governments; and c. fostering security and / or securing the operational activities of the industrial sector for the continuation or smoothness of logistical and / or production activities for certain industrial companies which are national vital objects.
Affirmed in this President Decree, every Battery-Based EV imported, manufactured, and / or assembled domestically to be operated on the road must be registered with its type and meet the provisions of the NIK (EV-Based Identification Number), by first having to obtain a type registration mark for imported vehicles and registration of NIK for vehicles manufactured and / or assembled domestically.
Meanwhile, to conduct a Battery-Based EV Type Test, one must first obtain a type registration certificate for imported vehicles and NIK registration for vehicles manufactured and / or assembled domestically.
In addition, according to this President Decree, every Battery-Based EV that is operated on the road must meet technical and road-worthy requirements. "Fulfil the technical requirements and roadworthiness of the Battery-Based EV as referred to through the Battery-Based EV test," reads Article 29 paragraph (2) of this Presidential Regulation.
This President Decree emphasizes that the Battery Based EV industry and / or the Battery Based EV component industry are required to provide warranty and post-sale services in accordance with statutory provisions.
At the time this Presidential Regulation comes into force, all types and types of EV Battery-based imported and not yet registered and type tests have not been carried out before the entry into force of this Presidential Regulation, EV Battery-based importers who import motorized vehicles are obliged to register types and conduct type tests as well as register and identification in accordance with the provisions of this Presidential Regulation no later than 12 (twelve) months from the entry into force of this Presidential Regulation.
"This Presidential Regulation comes into force on the date of promulgation," reads Article 37 of Presidential Regulation Number 55 Year 2019, which was promulgated by Minister of Justice and Human Rights Yasonna H. Laoly on August 12, 2019. (source from the Ministry of Industry / Pusdatin / ES)