Honda Prospect Motor (HPM) has announced its support for the PPnBM (Luxury Goods Sales Tax) incentive for electric vehicles and is preparing to introduce the Honda e:N1, an electric car expected to be launched in the first quarter of 2025.

The Ministry of Finance recently introduced an official electric car incentive. Customers purchasing electric vehicles by December 2025 will be exempt from the PPnBM.

This policy is outlined in the Regulation of the Minister of Finance (PMK) Number 135 of 2024, which addresses the Sales Tax on Luxury Goods for imports and/or delivery of taxable goods classified as luxury goods in the form of certain four-wheeled, battery-based electric motor vehicles (KBL). The tax will be borne by the government for the 2025 fiscal year.

In response to the incentive, HPM plans to introduce electric vehicles in Indonesia during the first quarter of 2025.

Yusak Billy, Sales & Marketing and After Sales Director of HPM, stated, "We acknowledge the government's initiative to accelerate the adoption of electrified vehicles, including electric cars, through various incentives."

The Japanese car manufacturer has also developed strategies concerning the availability of environmentally friendly vehicles for consumers in Indonesia, with the goal of promoting the transition to electric vehicles.

"We continue to review relevant regulations to align with our strategy. The launch of the e:N1 is part of our electrification roadmap for Indonesia, which we plan to implement in the first quarter of this year," he further added.

The government's electric vehicle incentives apply to both completely built-up (CBU) and completely knocked-down (CKD) electric vehicles. The incentive aims to encourage consumers to transition to electric vehicles.