Incentives for "low carbon" vehicles

The development of the automotive industry in the future is more focused on the production of low carbon cars.

JAKARTA – Electric cars are thought to reduce fuel consumption compared to conventional cars. In general, this saves more currency thanks to the dependence of oil imports.

Industry Minister, Airlangga Hartarto, said the government and stakeholders are completing the first phase of research on hybrid electric vehicles and plug-in hybrid vehicles.

Based on research conducted by the University of Indonesia (UI), the Bandung Institute of Technology (ITB) and the Gadjah Mada University (UGM), Yogyakarta, the hybrid vehicle Medium electric saves up to 50% fuel. While the hybrid HEV plug-in can save up to 75-80%. "If the Biodiesel 20 (B20) program saves up to six million kiloliters of fuel oil with these two types of vehicles, it can generate twice as much savings," Airlangga said in a statement. the summary report on the efficiency of electric cars phase 1 by six state universities. (PTN) in Jakarta, Tuesday (6/11).

By supporting the development of low-carbon vehicle (LCEV), the Ministry of Industry continues to encourage the creation of incentives in the form of tax holidays and tax breaks for the new investments and expansion of industries producing components and badembling low-carbon vehicles. In addition, incentives to deduct income tax up to 300% for industries conducting research and development (R & D) activities; and the harmonization of tax rates on motor vehicles.

The government has also finalized the legal regulations for electrified vehicles and is coordinated by the minister responsible for coordination for approval by the president. The regulation governs R & D and innovation, industrial development and the acceleration of the use of electric motor vehicles on highways.

The regulation also governs the provision of tax facilities, such as government-imposed obligations, export financing and badistance to finance working capital to enable the exchange of batteries.

In terms of non-tax facilities in the form of special parking, electricity billing fees are reduced in public charging stations for promotional badistance.

The results of research and joint studies with university researchers, according to Airlangga, will provide input to the government in implementing electric vehicle development policies, so as to achieve the goal of 20 % for the production of low carbon vehicles (LCEV) in 2025.

Production base

One of the main sectors of the Making Indonesia 4.0 roadmap, the national automotive industry is expected to form the basis for the production of motorized vehicles, internal combustion engines (ICE) and electrified vehicles (EV) intended for domestic and export markets.

The Indonesian government is currently working to encourage the use of environmentally friendly automotive technologies as part of the Low Carbon Emission Vehicle (LCEV) program.

"This is inseparable from the Indonesian government's commitment to reduce greenhouse gas (CO2) emissions by 29% in 2030 and to simultaneously protect energy security, particularly in the energy sector. land transport, "said Airlangga.

The Minister of Research, Technology and Higher Education (Menristekdikti), Mohamad Nasir, said collaboration between the government and PTN would be more effective for the sector. The government offers incentives and scholars who conduct research so that the industry can use them. Thus, there is a continuity between the results of the research and the market.

Nasir hopes that, as part of the development of this electric car, the incentive system provided will reflect what other countries are doing. "In Singapore, industries that use new innovations have benefited from a triple tax deduction.In Indonesia, it may be possible to double the tax deduction," he said. ers / E-9