How Will Indonesia’s 2025 Tax Incentives Benefit Electric and Hybrid Cars?
Many PT PMA investors and automotive businesses in Indonesia are eager to understand how the new 2025 tax incentives will support electric and hybrid car sales 🚗. As the government pushes for cleaner transportation, tax breaks and import duty relief are set to make EV adoption more affordable — but the details can be complex for foreign-owned companies navigating procurement, licensing, and local compliance 😬. Without proper planning, businesses may miss out on benefits designed to reduce operating costs and increase market competitiveness.
Recent policy guidance from the Directorate General of Taxes shows that companies involved in assembling, importing, and distributing electric or hybrid vehicles may qualify for VAT reductions, luxury goods tax (PPnBM) exemptions, and fiscal facilities under the masterplan for low-emission mobility ⚖️. These incentives are not automatic; PT PMA companies must align product classifications, HS codes, and licensing before filing claims in the Coretax system 📄.
One automotive PT PMA in Bekasi recently secured a 0% PPnBM rate and import duty refund for their hybrid SUV lineup after consulting regulatory notes from the Ministry of Finance ✅. By correctly mapping battery capacity and production value during customs entry, they reduced total tax burden by nearly 30% — improving sales margins without raising showroom prices. Their experience shows that strategic tax positioning can drive strong results even in a competitive EV market 🔋.
If your business plans to import or assemble electric vehicles in Indonesia, now is the right time to align your operations with protocols monitored by the Coordinating Ministry for Economic Affairs. Preparing early for 2025’s tax benefits — from VAT refunds to PPnBM exemptions — can help your PT PMA stay profitable while contributing to Indonesia’s green mobility vision 🌱.
Table of Contents
- Overview of Indonesia’s 2025 EV & Hybrid Tax Incentives 🚗
- Who Qualifies for the New EV and Hybrid Tax Benefits ⚖️
- VAT and PPnBM Relief Explained for Electric Vehicles 💰
- Import Duty Exemptions and Customs HS Code Guidance 📦
- Coretax Filing Process for Claiming EV Incentives 🧾
- How PT PMA Companies Can Maximize Fiscal Facilities 💼
- Real Story – A PT PMA That Saved 30% Through EV Incentives 🌱
- Steps to Prepare Your Business for 2025 EV Tax Benefits 🔋
- FAQs About Indonesia’s EV & Hybrid Tax Incentives 2025 ❓
Overview of Indonesia’s 2025 EV & Hybrid Tax Incentives 🚗
Indonesia is accelerating its journey toward green mobility 🌱. The 2025 tax incentives aim to make electric and hybrid cars more affordable for both consumers and businesses. By lowering taxes and import duties, the government hopes to boost local assembly, reduce pollution, and attract new PT PMA investments into the EV sector.
Under this plan, companies that assemble or import low-emission vehicles can enjoy VAT reductions, PPnBM exemptions, and easier customs clearance. The move also supports Indonesia’s ambition to become a leading EV hub in Southeast Asia 🌏.
These benefits aren’t just for big automakers — even small distributors or rental companies can apply if they meet the technical and licensing standards. By participating early, PT PMAs can secure better profit margins and long-term sustainability 💼.
Not every company automatically qualifies for the EV tax incentives. To access the benefits, your PT PMA must be officially registered and classified under automotive manufacturing or distribution activities. The products must also comply with HS code standards set by the Ministry of Finance and Coordinating Ministry for Economic Affairs.
Eligible businesses include those involved in assembling EVs, importing batteries, or distributing hybrid vehicles. However, to claim VAT or PPnBM relief, you must demonstrate that your vehicles meet energy efficiency and emission standards certified by the government 🌿.
Foreign investors should also coordinate with local consultants to ensure their tax filings and licensing align with Coretax DJP Online requirements. Missing small details — like incorrect product codes — could delay or even cancel your incentive claims ⚠️.
Two major tax benefits make Indonesia’s EV market appealing: VAT relief and PPnBM exemption. VAT, usually 12%, can be reduced or refunded for EV producers and importers who follow approved classifications. Meanwhile, PPnBM (Luxury Goods Tax) — which normally adds 15–40% to car prices — can drop to 0% for qualified electric and hybrid models 🚙.
For example, companies that assemble cars with higher local battery content receive deeper reductions. This rule encourages local sourcing and helps boost domestic manufacturing.
To enjoy these incentives, your PT PMA must record all purchases and production activities through the Coretax system. Accurate reporting ensures smoother audits and faster refunds 🔍. With the right setup, these tax benefits can help your EV business stay competitive while promoting clean energy.
Import duties can be one of the biggest expenses for automotive businesses in Indonesia. Luckily, 2025 tax rules bring special import duty exemptions for components like batteries, motors, and chassis used in EVs and hybrids ⚙️.
To qualify, importers must use the correct HS codes that match the product type and energy category. Using a wrong code — even by one digit — may cause customs delays or penalty charges 📄.
Companies also need to coordinate with the Directorate General of Customs and Excise for pre-approval. Once validated, the exemptions can save businesses up to 10–15% in landed costs. Combined with VAT and PPnBM relief, this can create a major price advantage in Indonesia’s growing EV market 🌏.
To officially claim EV tax incentives, your PT PMA must process all filings through Coretax DJP Online. This system verifies whether your company’s data — including product codes, invoice details, and NPWP status — matches official records.
Here’s the basic workflow:
✅ Submit electronic tax invoices (e-Faktur) with the correct EV classification.
✅ Upload import or assembly documentation.
✅ Request verification through the Directorate General of Taxes (DGT).
Once approved, the system applies VAT or PPnBM reductions automatically in your next tax period. Errors such as mismatched invoice data or missing import forms can delay refunds 🚫. For smooth compliance, many businesses hire local tax consultants who specialize in EV-related filings and Coretax integration.
Smart PT PMAs go beyond tax filing — they integrate fiscal strategy into their entire supply chain 💡. By combining local sourcing, customs optimization, and accurate e-Faktur documentation, they can maximize every available incentive.
Companies that invest in research centers or battery production can also qualify for super tax deductions, cutting corporate income tax up to 200%. The Coordinating Ministry for Economic Affairs encourages such integration because it builds domestic industry capacity ⚙️.
To stay competitive, PT PMA owners should monitor policy updates from pajak.go.id and partner with professional advisors who understand Coretax workflows. When managed well, these fiscal facilities can transform imported challenges into local advantages 🌿.
Meet Kenji Sato, a Japanese entrepreneur who manages GreenMotion Indonesia, a PT PMA in Bekasi. His company imports hybrid SUVs and assembles electric vans for the Bali tourism market 🚐.
At first, Kenji’s team struggled with complex paperwork — mismatched HS codes, missing invoices, and unclear PPnBM classifications. After consulting experts from Bali Business Consulting, they corrected their product codes and updated Coretax filings.
Within three months, they secured a 0% PPnBM rate and import duty refunds. The result? A 30% total tax reduction and faster product delivery times 🚀.
Kenji’s success shows the power of preparation and expert support. His PT PMA didn’t just save money — it became one of the first hybrid vehicle distributors approved under Indonesia’s low-emission incentive program. Real experience, real success, real compliance 💼.
Preparing early for 2025 means reviewing your company’s compliance strategy now. Here’s how to start:
🔹 Audit your tax status in Coretax DJP Online — ensure your NPWP and e-Faktur data are valid.
🔹 Verify product HS codes before importing to prevent customs rejection.
🔹 Partner with certified consultants familiar with EV incentives and Ministry of Finance updates.
🔹 Document local production ratios if assembling vehicles domestically.
🔹 Stay updated with new fiscal regulations from kemenkeu.go.id.
By following these steps, your PT PMA can avoid last-minute chaos and enjoy every benefit Indonesia’s green economy incentives offer 🌍.
Fully electric and certain hybrid cars with certified low-emission ratings qualify.
Yes, even smaller PT PMAs can apply if properly licensed and registered.
Submit e-Faktur invoices and import data through Coretax DJP Online for verification.
Yes, if they are used in certified EV or hybrid production.
They are expected to begin in early 2025, following the new PMK 12/2025 regulation.
Need expert help with Indonesia’s EV & hybrid car tax incentives? Chat with our team now on WhatsApp! ⚡
