Indonesia has lowered its value-add tax on EV sales! The original 11% tax has now become 1%. 

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🇮🇩 More EVs in Indonesia

The goal? To attract more investments into producing EVs domestically. 

• Senior cabinet minister Luhut Pandjaitan previously expressed hopes for Indonesia to become "one of the top three countries in the world producing EV batteries as well as electric cars" by 2027.

It's subsidized. In March 2023, Indonesia said it would allocate over $460M to support EV sales through 2024. 

Did you know? Indonesia has a rich reserve of nickel, a crucial component for lithium-ion batteries. 

• Nearly 75% of lithium-ion batteries and 50% of battery refining materials are sourced from China.
• Indonesia has the potential to become a major hub for battery production. This is due to the country's vast deposits of nickel, tin, and copper!

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🔌 Challenges 

These ambitious plans are not without their challenges in both the adoption and production of EVs. 

• High vehicle prices
• Lack of charging infrastructure
• International resistance to the nickel export restrictions imposed by Indonesia

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🗺️ EVs in Southeast Asia 

Passenger EV sales accounted for nearly 2% of total passenger vehicle sales in SEA in 2022.

• 🇹🇭Thailand accounted for 58% of the region's EV sales
• 🇮🇩🇻🇳Followed by Indonesia (19.5%) and Vietnam (15.8%)

Southeast Asian countries are on their way to improving their energy security. EVs are part of the solution!