French automaker Citroen announced that it will begin to produce electric vehicles (EVs) in Indonesia starting from June this year. During a car launching event on Tuesday, April 23, 2024, President Director of Citroen Indonesia, Tan Kin Pauw, said that the company will start to produce completely knock down units in June, with 20 to 40 percent local components, by partnering with a local assembling company that owns an assembling plant in Purwakarta, West Java. The company started to market its cars in Indonesia in August last year by importing completely built up units from India. By producing the EVs locally, Citroen can be eligible for EV incentives that the government has set up for foreign car manufacturers. The government has issued a regulation offering new incentives for automakers to build electric vehicle (EV) manufacturing plants in Indonesia. Under this regulation, car manufacturers who agree to establish production facilities in the country will be exempt from import duties and luxury goods value-added tax on EVs until the end of 2025. Additionally, the government will offer relaxed local content requirements. In addition to Citroen, the new policies have gained the interest of China’s BYD and Chery as well as Vietnam’s Vinfast. (ICE GIACARTA)

Fonte notizia: Indonesia Trade and Economic Weekly - 26 April 2024