According to reports, at a press conference held at the office of the Ministry of Economic Coordination in Jakarta, Indonesia's Minister of Industry Agus Gumiwang Kartasasmita stated that Indonesia will provide sales tax incentives to several electric vehicle manufacturers, including Citroen, BYD, and GAC Aion. It is reported that these three major car companies have promised to build production facilities in Indonesia and will enjoy preferential policies of 0% import tariffs and 15% value-added tax on luxury goods in Indonesia from January 1, 2025. This move will promote the production and sales of electric vehicles in Indonesia.

Agus Gumiwang Kartasasmita said that the above measures demonstrate Indonesia's competitive regulatory environment to global investors and car manufacturers. Currently, the Indonesian government is building the country into a pure electric vehicle manufacturing center in the ASEAN region.

The Indonesian government has formulated an ambitious plan to utilize its abundant nickel reserves to build the domestic electric vehicle industry in Indonesia. Nickel is a key raw material for electric vehicle batteries. In order to attract investment in electric vehicles from around the world, the Indonesian government has been providing incentives such as tax breaks. It is reported that in July this year, the first joint venture factory for electric vehicle batteries between South Korean companies Hyundai and LG New Energy in Indonesia began production, with a total investment of 1.1 billion US dollars from the two companies in the factory.

China is the world's largest market for electric vehicles, and as part of their overseas expansion plans, Chinese electric vehicle and battery manufacturers are also actively conducting business in Indonesia and other Southeast Asian countries.

Chinese electric vehicle manufacturer BYD announced a $1.3 billion investment in Indonesia, including the establishment of an electric vehicle factory in West Java province. The factory is expected to start operating in January 2026, with an annual production capacity of up to 150000 vehicles. It is reported that BYD successfully entered the Indonesian market in January this year.

In April of this year, GAC Aion, the main electric vehicle manufacturing subsidiary of GAC Group, announced its expansion into Indonesia and established a partnership with Indomobile Group, a local distributor in Indonesia. GAC Aion is currently building a production plant in Indonesia after its Thailand factory started production in July this year. According to reports, Andry Ciu, CEO of Aion Indonesia, a subsidiary of GAC Group, stated that the factory's goal is to produce at least 40% of its automotive parts locally in Indonesia by 2027, and then achieve localized production of 80% of its automotive parts.

It is reported that by 2030, Indonesia plans to produce about 600000 electric vehicles, which is more than 100 times the sales volume of electric vehicles in Indonesia in the first half of last year.