AN INVESTIGATIVE STUDY ON THE IMPACT OF VALUE ADDED TAX TO THE MARKET GROWTH OF ELECTRIC VEHICLES (EVS) IN INDONESIA

• Main Author: Danendra Adisuryo, Rayhan
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/86142
• Institution: Institut Teknologi Bandung

The rapid global expansion of Electric Vehicles (EV) has displayed their significant change in the sustainable transport movement, offering potential benefits in reducing carbon emissions, which are mainly caused by the internal combustion engine vehicles, and other possible advantages. By examining the Republic of Indonesia, a country experiencing rapid industrialization and urbanization, the presence of EVs presents both opportunities and challenges not just for the government but also for the residents. One of the significant factors influencing market growth for EVs in Indonesia is the Value Added Tax (PPN) imposed on these vehicles. This research project utilizes a quantitative research approach with the exploration of secondary data sources as the main sources of the information. The primary objective of doing this is to elaborate on the direct and indirect ties of VAT and the EV market growth in Indonesia. The research made an attempt to determine empirically the role that VAT plays in consumer attitudes and preferences, industry trends and penetration of BEVs and other EV types in Indonesia by interrogating historical data, market expansion trends, and tax system policies. On the other hand, the study also intends to make an analysis and give policymakers and stakeholders practical suggestions. A fundamental objective of this policy is to shed light on the potential effects which various measures of government will have on electric vehicles, therefore making the market with more electric vehicles in Indonesia.