Indonesia will offer tax incentives to several electric vehicle makers, including BYD, GAC Aion and Citroen, which have committed to building plants in the country.

Airlangga Hartarto, Indonesia's coordinating minister for economic affairs, said at a briefing on Monday that value-added tax (VAT) incentives for luxury items, which are borne by the government, will continue to be implemented next year for four-wheeled electric vehicles that use batteries.

Indonesian Industry Minister Agus Gumiwang Kartasasmita said at the conference that "in 2024, three companies have committed to build production facilities in Indonesia, including BYD, GAC Aion, and Citroen."

"These three companies will enjoy stimulus incentives of 0% import tariff and 15% VAT on luxury items," he noted.

Agus also called on Indonesian hybrid car makers to immediately register their brands with the Ministry of Industry to receive the incentives offered by the government.

In January, BYD further expanded its Southeast Asian market footprint with the launch of three all-electric models in Indonesia -- Dolphin, Seal, and ATTO 3.

BYD finalized plans to build a plant in Indonesia's Subang Smartpolitan industrial zone in April, with production expected to start in 2026.