The incentive came into effect this month and will remain in
place until the end of the year, the Coordinating Ministry of
Maritime and Investment Affairs said in a statement.
A VAT cut was also applied to some electric buses, it said.
Indonesia is stepping up efforts to lure investment into
domestic production of EV batteries and EVs to utilise its rich
reserves of nickel, which is processed for battery production.
Officials have been trying to attract investment from
electric car makers such as Tesla and China's BYD Auto.
South Korea's LG and Hyundai have already started
constructing plants to assemble batteries and EVs in the
Southeast Asian country.
Indonesia said last month it would allocate 7 trillion
rupiah ($466.70 million) in state funds to subsidise electric
motorcycle sales through 2024.
($1 = 14,999.0000 rupiah)
(Reporting by Fransiska Nangoy
Editing by Ed Davies)
JAKARTA, April 3 (Reuters) - Indonesia has lowered its
value-add tax on battery-based electric vehicle sales to 1% from
11% to encourage the adoption of EVs, a government ministry said
on Monday, amid efforts to attract investment into domestic
production,
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