The battery-based electric motor vehicle industry (Battery Electric Vehicles – BEVs) in Indonesia is experiencing rapid growth alongside increasing awareness of environmental protection. Various regulations related to the battery-based electric motor vehicle industry demonstrate the Indonesian government’s support for new and renewable energy. Not only focusing on practical energy development, but also legal aspects ranging from licensing, investment, land procurement, to legal certainty are required to support the development of new and renewable energy in Indonesia.
The issuance of Presidential Regulation No. 55 of 2019 concerning the Acceleration of the Battery Electric Vehicle Program for Road Transportation (Perpres 55/2019) serves as the initial legal framework for electric motor vehicles in Indonesia. As stated in Article 3, the acceleration program for battery-based electric motor vehicles is conducted through the acceleration of the domestic battery-based electric motor vehicle industry; provision of incentives; establishment of charging infrastructure and electricity tariffs for battery-based electric motor vehicles; compliance with technical requirements for battery-based electric motor vehicles; and environmental protection.
The implementation of the battery-based electric motor vehicle acceleration program can only be participated in by business actors in the motor vehicle industry who already possess industrial business licenses and domestic battery-based electric motor vehicle manufacturing facilities. Business actors may carry out industrial activities independently or in cooperation with other domestic battery-based electric motor vehicle companies.
To further accelerate the development of the battery-based electric motor vehicle ecosystem, the government revised Perpres 55/2019 by issuing Presidential Regulation No. 79 of 2023 concerning Amendments to Perpres 55/2019 (Perpres 79/2023), followed by the issuance of several Ministerial Regulations providing technical guidelines to support the acceleration program for battery-based electric motor vehicles, including licensing for battery-based electric motor vehicles.
To enter the electric motor industry under the classification KBLI 27111, which includes the production of electric motors and all related components such as AC motors, DC motors, stators, rotors, brushes, and commutators, business actors are required to meet various legal and licensing requirements before proceeding to production and operation.
For operations in low to medium risk business activities, business actors must obtain a business license in the form of a Business Identification Number (NIB) and a standard certificate. The NIB serves as proof of registration or business actor registration to conduct business activities, as well as official identification for the implementation of business activities. Meanwhile, the standard certificate is required as legality to conduct business activities, confirming that the business actor has met the established standards for their business operations. This certificate is obtained through a process regulated by the Online Single Submission (OSS) system.
If business actors have obtained business licenses, this will form the basis for business actors to prepare, operate, and/or commercialize their business activities. Therefore, business actors must have the required business licenses, namely the NIB and standard certificate.
Additionally, business actors, particularly in large-scale businesses, must meet several requirements, such as ensuring the safety and security of equipment, processes, production results, storage, and transportation; efficiently, environmentally friendly, and sustainably utilizing natural resources; having a National Industrial Information System account; submitting accurate, complete, and timely industrial data periodically through the National Industrial Information System; meeting Electric Motor Industry Standards; and complying with SNI, technical specifications, and/or mandatory guidelines. Products subjected to mandatory SNI, technical specifications, and/or guidelines must adhere to these standards.
Article 405 of Government Regulation No. 5 of 2021 concerning the Implementation of Risk-Based Business Licensing (PP 5/2021) also regulates administrative sanctions for business actors without business licenses, including written warnings, administrative fines, and temporary closures.
However, for business actors in the industrial sector not located in industrial areas, and/or exempted industrial sector business actors not located in designated industrial areas, administrative sanctions include written warnings, administrative fines, temporary closures, suspension of business licenses, and revocation of business licenses.
Based on the above explanation, the electric motor vehicle industry has significant potential in Indonesia, but business actors must comply with various complex legal and licensing aspects. Through a good understanding of battery-based electric motor vehicle licensing regulations, the industry can be effectively implemented, providing positive impacts on the environment, especially in reducing air pollution levels caused by combustion engine motor vehicles.
