Indonesia to Offer 0% Import Tariffs and Other Tax Benefits for BYD, GAC Aion, and Citroën
According to Bloomberg, Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the government will continue to implement the luxury goods VAT incentive policy, which is borne by the government, for four-wheel electric vehicles (cars) that use batteries in the coming year.
The Minister of Industry, Agus Gumiwang Kartasasmita, said, "In 2024, three companies have committed to building production facilities in Indonesia, including BYD, GAC Aion, and Citroën. These three companies will enjoy 0% import tariffs and a 15% luxury goods VAT incentive measures."
The Indonesian Minister of Industry also called on Indonesian hybrid car manufacturers to immediately register their brands with the Ministry of Industry to receive the incentives provided by the government. They can obtain incentives as long as they meet local requirements.
As previously reported, in January of this year, BYD launched three pure electric models in Indonesia — Dolphin, Seal, and ATTO3 (Yuan PLUS), further expanding its footprint in the Southeast Asian market. In April of this year, the location for BYD's electric vehicle factory in Indonesia has been finalized, with production expected to start in 2026.
