Suara.com – The readiness of the domestic electric vehicle battery industry is an important factor in efforts to achieve the Domestic Component Level (TKDN) target for electric vehicles.
Deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs and Investment (Kemenkomarves) Rachmat Kaimuddin said the government has relaxed the time to achieve the TKDN target for electric vehicles of 40 percent due to the completeness of the supporting ecosystem such as batteries.
“Indeed, if we look at just playing with numbers (TKDN), that can’t be done, there must be batteries. We see that the battery industry in Indonesia is starting to grow and will be finished in 2026,” said Rachmat when met after attending a discussion session at the Kadin Tower, Newsdelivers.com on Friday.
According to him, if the electric vehicle battery industry is ready, the government’s policy of requiring electric vehicle manufacturers to comply with regulations regarding TKDN will become more realistic.
“So in 2026 the battery industry will be ready, so in 2027 we will require TKDN of 60 percent which is more realistic. So the industry is actually waiting,” said Rachmat.
It was previously reported that this week President Jokowi signed Presidential Decree Number 79 of 2023 concerning amendments to Presidential Regulation Number 55 of 2019 concerning the Acceleration of the Battery-Based Electric Motor Vehicle Program for Road Transportation.
The new regulations include changing the TKDN target of 40 percent for electric vehicles from 2024 to 2026. Meanwhile, the TKDN target of 60 percent has been postponed to 2027.
Apart from relaxing the rules regarding TKDN, Presidential Decree 79 million provides a number of incentives for companies importing full electric cars. The incentives given are free import duties, free PPnBM and regional tax cuts.
However, companies that receive these incentives must provide a commitment to invest in Indonesia. If the commitment is violated, the government will impose sanctions in the form of a fine equal to the incentives received.