China wheel hub and bearing  
As one of the largest economies in Southeast Asia, the Indonesiangovernment has introduced a series of preferential policies to promote the development of the electric vehicle industry. FromApril 2023 to 2025,the value-added tax on locally producedelectric vehicles with a localization rate of 40% of componentswill be reduced from 11% to 1%.in addition, for manufacturerswho have committed to building factories in China by 2026, theiwhole vehicle assembly (CBU) and spare parts assembly (CKD)electric vehicles can enjoy import tariff exemptions, while theluxury goods sales tax (PPnBM) on imported and locally assembled electric vehicles is temporarily reduced. These policieshave effectively reduced the production cost of electric vehiclesand attracted more car manufacturers to invest in buildingfactories in Indonesia.
In addition to tax incentives, the Indonesian government hasfurther promoted the development of the electric vehicle industryby supporting labor-intensive industries. such as reducingemyee income tax, providing machinery and equipment interestsusidies,and offering work-related injury insurance subsidies.Although there is still a gap between the current sales share ofelectric vehicles in Indonesia and the target of 25% by 2030, itsmarket prospects remain broad with the continued implementationf policies.
Author:Jack
Position:General manager