Indonesia Aims at Exporting Electric, Hybrid Cars to Oz
7 September 2018 14:38 WIB
TEMPO.CO, Jakarta - Indonesia is planning on exporting electric-powered and hybrid vehicles to Australia following the completion of the Indonesia-Australia comprehensive economic partnership agreement (IA-CEPA).
“We expect our exports will increase following the CEPA deal, we can enter the automotive sector and not just conventional cars, but also electric and hybrid cars,” said the Director General of International Trade Negotiation, Imam Pambagyo, at the Trade Ministry on Friday, September 7.
Imam referred to the rapid growth of the automotive industry in Thailand following the conclusion of its trade negotiation with Australia. "We don't have a specific target yet, but we can tap into that sector," Imam said.
Among of the results of the negotiation is that Australia will scrap all of its tariff posts, totalling 6,474 tariff posts.
Read: Indonesia-Australia Reach Agreement on IA-CEPA
The Australian government will also facilitate the export of hybrid and electric cars through change in tariff heading (CTH), 35 percent qualifying value content (QVC) or built in Indonesia from a complete knock down kit.
Imam hoped the export of electric and hybrid cars from Indonesia to Australia would open up similar opportunities to other commonwealth countries and other markets. "Australia is not the only target, but it is all about how we can tap into the world market," he said.
The government expects its automotive exports could reduce the trade deficit between Indonesia and Australia. According to the Trade Ministry's data, the Indonesia-Australia trade deficit in January-May 2018 reached USD 757.9 million
CAESAR AKBAR