Tariff of 0% (zero percent) import duty on import of electric-based vehicles in the form of Incompletely Knocked Down / IKD

On 22 February 2022, the Minister of Finance (“MoF”) issued a new regulation No. 13/PMK.010/2022 regarding the Stipulation of Goods Classification System and Imposition of Import Duties on Imported Goods (“PMK-13/2022”), as the fourth amendment of MoF regulation No. 6/PMK.010/2017.

Through PMK-13/2022, the government sets a special tariff of 0% (zero percent) that is intended for imports in the form of incomplete condition (Incompletely Knocked Down / IKD) of electric motorized vehicles of four or more wheels with battery-based electric motors to drive road tractors for semi-trailers, motorized vehicles for the transportation of ten or more people including the driver, certain other motorized vehicles for transportation, and goods transport vehicles and frames equipped with electric motors as propulsion. The details of the goods concerned are as listed in Chapter 98 of PMK-13/2022.

This PMK-13/2022 is issued to encourage the increase in the added value of assembly of the industry of motor vehicles with four or more wheels in accordance with the needs of the development of the four-or-more-wheeled motor vehicle industry and accelerate the battery-based electric motor vehicle program for road transportation.

PMK-13/2022 became effective on 1 March 2022.

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