News dalla rete ITA

14 Ottobre 2021

Indonesia

HUNDREDS OF TRILLION RUPIAH INVESTMENT FOR ELECTRIC CARS WILL COME TO INDONESIA

The government hopes to soon realize Indonesia's ambition as the center of the electric car ecosystem. In this regard, capital flows reaching 8.7 billion US dollars or equivalent to Rp. 123.97 trillion (exchange rate of Rp. 14,250) in this sector will enter Indonesia gradually until the first half of next year. Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the investment was for electric cars and their supporting components, in the form of battery cells, precursors, and cathodes. This value does not include the investment of the Hyundai-LG Consortium and Indonesia Battery Corporation (IBC). The Hyundai-LG and IBC consortium is building an electric car battery factory in Karawang, West Java, with a value of US$1.1 billion. Meanwhile, on Wednesday (15/9/2021), President Joko Widodo conducted a groundbreaking for the factory which is predicted to be the first electric vehicle battery factory in Indonesia and Southeast Asia. "The remaining investment (8.7 billion US dollars) is a combination of foreign investment (PMA) and domestic investment (PMDN) which will be realized in December 2021 until early 2022," Bahlil said at a press conference, Friday (17/9). /2021). According to Bahlil, in December 2021, the precursor and cathode plant will start groundbreaking. The investment value reaches 5 billion US dollars - 6 billion US dollars. Therefore, he hopes that, in 2023, the entire electric car ecosystem, from upstream to downstream, will begin to carry out the production stage. Bahlil revealed, there are three things that encourage the flow of capital in the electric car ecosystem into Indonesia. First, Indonesia is a large market, so investors see it will be more effective to build factories in the country. Second, Indonesia has 80 percent of the raw materials for electric car battery cells, namely nickel, cobalt, aluminum and manganese. Only 20 percent of the other components, namely lithium, are still imported. Third, the ease of doing business in Indonesia after the implementation of Law (UU) Number 11 of 2020 concerning Job Creation has cut the licensing bureaucracy. This is what makes investing much more efficient and effective. "Those who want to invest in the electric car ecosystem in Indonesia are from seven countries, such as China, Europe, and one of the countries in Southeast Asia. We will announce it later," said Bahlil. PPnBM incentives In addition, the government is also trying to attract investors to invest in Indonesia related to the electric car ecosystem through the exemption of sales tax on luxury goods (PPnBM) for battery-based electric motor vehicles. The policy is contained in Government Regulation (PP) Number 74 of 2021. This regulation was signed by President Jokowi and will take effect from October 16, 2021. PP No. 74/2021 states that the PPnBM tariff of 0 percent applies to motorized vehicles using battery electric vehicles (BEV) or fuel cell electric vehicle (FCEV) technology. The regulation also regulates the PPnBM tariff for electric vehicles according to the results of carbon emissions. The higher the emission produced, the higher the PPnBM tariff imposed. Finance Minister Sri Mulyani Indrawati said the PPnBM regulation would encourage sales of electric cars. Thus, it can create a multiplier effect on investment in the electric car derivative sector. This is in line with the government's aspiration to build an electric car ecosystem from upstream to downstream. Starting from mines, smelters, battery factories, to electric charging stations. Source: https://money.kompas.com/read/2021/09/20/155557826/investasi-ratusan-triliun-rupiah-untuk-mobil-listrik-akan-datang-ke-indonesia?page=all (ICE GIACARTA)


Fonte notizia: IBAI Biweekly E-mews 16th Edition of Week 18 & 19 of 2021