Jakarta. French carmaker Citroën has been granted a zero percent tariff for its electric vehicle model, the E-C3, to be shipped and sold in Indonesia until its local assembly plant becomes operational in the next two years.

Citroën’s authorized distributor in Indonesia, Indomobil Distributor Nasional, said on Monday the Investment Coordinating Agency (BKPM) officially approved the company’s proposal to take part in the battery-based electric vehicle program on May 3.

The E-C3 intended for Indonesian sales is fully built in India but the BKPM has confirmed that it’s exempt from tariff and luxury tax.

The generous incentives apply during the transition period until Citroën builds the car in Indonesia by 2026 at the latest.

The BKPM decision was addressed to National Assemblers, a subsidiary of Indomobil specializing in car assembly including Citroën brands.

Indomobil National CEO Tan Kim Piauw warmly welcomed the decision and expressed the commitment to supporting the Indonesian government’s electrification push.

"It proves Citroën’s long-term commitment to filling the auto market in Indonesia and making a contribution to emission-free mobility," Tan said in a statement.

The Citroën E-C3 has been advertised in Indonesian markets starting from Rp 377 million ($23,427).