Page 3 - Newsletter (Fiscal Incentives for Electric Vehicles and Fiscal Policy Plan for the Year of 2020)

DDTC Newsletter Vol.02 | No.03 I August 2019 Page 3 of 6

Fiscal Incentives for Electric Vehicles and Fiscal Policy Plan for
the Year of 2020

The Latest Anti-Dumping Import Duty
meeting the technical requirements of battery electric
Provisions
vehicle, and protecting the environment.
The parties entitled to get incentives according to this
As a form of government protection for the domestic
regulation are industrial companies, public transport
industry, the government issued two new provisions
companies, universities, research and development regarding the anti-dumping import duty (Bea Masuk Anti-
institutions, as well as individuals who will become the
Dumping/BMAD). This kind of regulation is imposing
consumer. Later, the types of this kind of vehicle will be
an extra tariff on the import duty of a type of imported
grouped into two main categories, namely two-wheeled
goods.
and/or three-wheeled and four-wheeled or more
wheeled. The specification itself will be determined by One of the regulations related to anti-dumping import
the Ministry of Industry. duty which issued recently is MoF Regulation No. 111/
PMK.010/2019 concerning the Imposition of Anti-
Furthermore, both the central and local governments can
dumping import duty on Imports of Hot Rolled Plate
provide the incentives. For fiscal incentive itself, there
(HRP) Products from the China, Singapore and Ukraine
are fourteen types of facilities mentioned in regulation
(MoF Reg No. 111/2019). This regulation updates the
which was signed on 8 August 2019. First, import duty
previous regulation, namely MoF Reg No. 50/2016 which
incentive on the importation of battery electrical vehicle
ended in April 2019.
in a Completely Knock Down/CKD condition, a battery
electric vehicle in an Incompletely Knock Down/IKD MoF Reg No. 111/2019 itself was motivated by the results
condition, or a major component which will be granted of an investigation by the Indonesian Anti-Dumping
for certain amounts and time period. Committee which found that imports of these products
from those three countries caused losses to the domestic
Second, the STLG incentive. Third, incentives in the
industries. Therefore, the government has again decided
form of exemption or deduction of central and regional
to re-enact this anti-dumping import duty starting 14
taxes. Fourth, import duty incentives for the importation
days from 1 August 2019. Table 2 shows the main points
of machinery, goods, and materials in the context of
of comparison between the latest provisions and the
investment. Fifth, the deferred import duty incentive
previous one.
in the framework of export. Sixth, import duty which is
borne by government for the importation of raw materials Besides imposing the extra tariff for the products made
and/or supporting materials used in the framework of from steel, the government also issues anti-dumping
the production process. import duty provisions on imports of textile products.
The provision is regulated through MoF Regulation
Seventh, the incentive for the equipment in order to
build the public electric vehicle charging station (Stasiun Number 115/PMK.010/2019 concerning the Imposition
Pengisian Kendaraan Listrik Umum/SPKLU). Eighth,
Table 2 Comparison of Anti-dumping import duty
the export financing incentives. Ninth, fiscal incentives
Provisions for the Hot Rolled Plate (HRP) Product
for conducting research, development, technological
innovation activities and battery-based components
No. Comparison MoF Reg MoF Reg
industry vocational activities. Tenth, parking fees Criteria No. 56/2016 No. 111/2019
incentive at some locations determined by the local
government.
1 HS Code 7208.51.00.00 7208.51.00
and 7208.52.00.00 and 7208.52.00
Eleventh, the relief of electricity charging fees at SPKLU.
Twelfth, financing support for SPKLU infrastructure 2 Anti-dumping 11.93% 11.93%
import duty
development. Thirteenth, incentive for standardizing
tariff for China
the human resources competency in the battery electric
3 Anti-dumping 12.50% 12.50%
vehicle industry. Fourteenth, incentive for improving
import duty
the product and/or technical standard for the battery tariff for
electric vehicle industrial company and the battery Singapore
electric vehicle component industry. 4 Anti-dumping 12.33% 12.33%
import duty
All fiscal incentives will be provided in accordance with tariff for
general tax provisions and procedures law. In addition, Ukraine
the provision of incentives in the form of exemption or 5 Validity period 3 years since the 5 years since the
enactment enactment
deduction of local taxes in the form of vehicle tax and fees
for title transfer tax of the battery electric vehicle will
Source: MoF Reg No. 56/2016 and MoF Reg No. 111/2019.
be regulated in ministerial regulations that administer
domestic government affairs.