Understand Electric Car Subsidies for Wuling EV Owners in Indonesia
31 March, 2024
Electric cars in Indonesia are currently one of the favorites. Many conventional car users are switching to using electric cars. Equipped with the latest technology, electric cars are very environmentally friendly, which is one of the main reasons many people choose them. Moreover, supported by government policy, electric vehicles currently have many subsidies.
Starting from subsidies on the price of the electric car itself to subsidies on the tax on electric cars, which are much more affordable than conventional cars, This policy has also made many Indonesians interested in owning electric vehicles because they are more affordable.
Even in use, electric cars are much cheaper than conventional cars. The reason is that charging it using electricity is more affordable than filling up with fuel in a conventional car. To find out about the latest electric car subsidies, let’s look at the following review.
Electric Car Subsidies 2024
Starting from January 2024, tax incentives for EVs will be relaxed. Presidential Regulation (Perpres) no. 79 of 2023 revises Presidential Regulation No.55/2019 concerning the development of battery-based electric vehicles (BEV).
Luxury goods sales tax (PPnBM) and motor vehicle tax (PKB) are exempted for imported electric vehicles in accordance with this regulation. In addition, the government made regulations that ease the requirements for the Domestic Component Level (TKDN). So far, incentives for electric vehicles only apply to vehicles made domestically with a certain TKDN.
However, in Presidential Decree no. 79/2023 provides incentives only to companies that are building factories in Indonesia; This gives companies until the end of 2025 to complete it.
During this time, the government waived import duties and PPnBM for electric car manufacturers who were in the process of building their factories in Indonesia. Even so, electric cars from this manufacturer will still be subject to 11% Value Added Tax (VAT), meaning they will not receive the 10% VAT incentive.
Electric Car Subsidies in Indonesia
One of the references for getting an EV (electric vehicle) or electric car subsidy from the Indonesian government is a Domestic Component Level (TKDN) value of more than 40 percent, so you can get an electric car subsidy from the government. One of the electric car products that already has a TKDN value of more than 40% is Wuling Air ev and BinguoEV.
Produced in Indonesia and having a TKDN value that meets the requirements, Wuling cars are much sought after by people in Indonesia. As we have seen today, Wuling cars are often found on the highway.
Plus, the infrastructure for charging electric cars continues to develop, which makes it easier and more comfortable to use electric vehicles, even for trips to various cities. Until now, the government has continued to add SPKLU (Public Electric Vehicle Charging Stations), which will support electric cars on their journey.
Air ev and BinguoEV Electric Car Subsidies
One of the newest electric cars from Wuling is the BinguoEV, which now receives subsidies from the government with a value-added tax (VAT) discount of 10%. This means that customers who buy this subsidized electric car only need to pay 1% VAT.
In mid-December, the market price for BinguoEV was announced, namely IDR 358 million for the 333-kilometer Long Range AC DC variant and IDR 408 million for the 410-kilometer Premium Range AC DC variant. After the subsidy was reduced, the price of the two variants fell by around IDR 30 million, with prices of IDR 326 million and IDR 372 million, respectively. This price tag is just an estimate.
Apart from BinguoEV, there is still Wuling Air ev, which also receives subsidies from the government. Air EV has already received subsidies because it is produced by a factory in Indonesia and has a TKDN value that meets the requirements.
The following is a price list (OTR Jakarta) for Wuling electric cars that have received subsidies from the government:
Wuling Air ev
- Air EV Lite: IDR 190 million
- Air EV Standard Range: IDR 224 million
- Air EV Long Range: IDR 275 million
BinguoEV
- BinguoEV 333 Km Long Range AC: IDR 317 million
- BinguoEV 333 Km Long Range AC/DC: IDR 326 million
- BinguoEV 410 Km Premium Range AC/DC: IDR 372 million
So, that’s a complete explanation regarding electric car subsidies in Indonesia, which make the price of electric cars more affordable. Of course, with this subsidy, more people can afford it. Switching to a car that is environmentally friendly and cheaper to own will reduce costs compared to owning a conventional car.
