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Gaikindo responds to Jokowi signing rule postponing domestic component mandate for electric vehicles

Tempo - December 15, 2023

Moh Khory Alfarizi, Riri Rahayu, Jakarta – The Indonesian Automotive Industry Association (Gaikindo) responded to the issuance of Presidential Decree No. 79/2023. The new regulation revises Presidential Decree No. 55/2019 on the Acceleration of the Battery-Based Electric Motor Vehicle Program for Road Transportation.

One of the points changed in Presidential Decree 79 of 2023 is the minimum requirement for Domestic Component Level (TKDN) in electric vehicles, which is 40 percent, by 2024.

The Presidential Decree 79 of 2023, the government relaxed the TKDN mandate, pushing back the deadline to 2026. This relaxation applies to electric motorbikes and electric cars.

Gaikindo chairman Jongkie D. Sugiarto said that for now, he cannot say what impact the rule, signed by Jokowi on December 8, will have on the automotive industry.

"We are still waiting for the [operational instructions and technical instructions]," said Jongkie via short message on Thursday, December 14.

However, he did not deny that the trend for adopting electric vehicles in Indonesia is still limited. The main obstacle is price, which is not yet affordable by the wider community.

According to Jongkie, currently, the vehicles that sell are cars priced at Rp300 million and below. "Every year, 65 percent of total motor vehicle sales are priced under Rp300 million," he said.

Source: https://en.tempo.co/read/1809769/gaikindo-responds-to-jokowi-signing-rule-postponing-domestic-component-mandate-for-electric-vehicle