JAKARTA. The Indonesian government will give incentives for electric cars, as stated in Regulation of the Ministry of Finance (PMK) No. 8/2024 regarding the Government-Borne Value Added Tax (PPN DTP) of Electric Cars.

The regulation will be applicable for electric cars with Domestic Component Level (TKDN) of minimum 40%. Meanwhile, the TKDN set for electric bus is 40% and 20%. 

The applicable PPN DTP is 10% of normal tariff, which is 11%. However, for electric bus with minimum TKDN of 20% will only receive PPN DTP of 5%. 

Sukarno Alatas, Head of Equity Research of Kiwoom Sekuritas, said that the incentive will positively affect PT Astra International Tbk (ASII). According to IDNFinancials data, ASII indeed still dominates market share of car sales in the domestic market.

"The incentive will be able to enhance the people's power purchase in hybrid cars. Thus, the sales of hybrid cars of ASII are projected to increase," added Alatas, as quoted from Bisnis yesterday (22/2).

Alatas admitted that the car sales of ASII in 2023 indeed slowed down by up to 25.16% year-on-year (yoy). However, fundamentally, Alatas said that ASII's current stock price is deemed affordable for purchase. "The prospect for this year is quite good, following the end of General Election and incentives for hybrid and electric cars. So, the performance of ASII is projected to increase," said Alatas. (KR/ZH)