Event Reports

On 12 November 2019, few members of the Automotive Working Group met to jointly discussed longstanding issues surrounding the Completely Knocked-Down (CKD) importation scheme. Reportedly the ministry of industry is now reassessing the policy as already stipulated under Ministry of Industry Regulation No. 34/2017 which has been amended also by Regulation No. 5/2018. Based on this meeting, it is proposed to convey some remaining challenges in the implementation of the policy such as the level of completeness and disassembling, as well as the requirement to import the required CKD parts in one shipment. As a follow up, currently a draft input is being drafted by the group to be offered to the Ministry of Industry in coming activities.

On 21 November 2019, EuroCham Automotive Working Group was invited to a workshop on Electric Vehicles Standards and Regulations. The event was organized by the Ministry of Industry and the Japan External Trade Organization (JETRO) in order to obtain input from automotive stakeholders for the implementation of the President Regulation No. 55/2019 on acceleration of Battery Electric Vehicles program and Government Regulation No. 73/2019 on Luxury Goods Tax.

It was highlighted by Harjanto (The Director General of Metal, Machinery, Transportation and Electronic of Ministry of Industry) that through the two regulations the government could encourage domestic production, increase value chain productivity, increase export, and make Indonesia as a hub for production of Electric Vehicle. It was mentioned also that the Ministry is currently drafting four regulations to implement the Electric Vehicles Regulation, in addition to four regulations that are also being drafted related to local content requirements, Completely Knock Down and Incomplete Knock Down, technical specifications related of the Battery Electric Vehicles, and lastly its roadmap. These four regulations are expected to be finalized within three years.