Govt to give incentives for hybrid, electric cars

President Susilo Bambang Yudhoyono says that the government will provide fiscal incentives for hybrid and electric vehicles as part of efforts to cut fossil fuel consumption in the future.

“By providing incentives, we hope that hybrid and electric vehicle prices can be more competitive and affordable,” he said in his speech at the Presidential Palace in Jakarta on Tuesday evening.

He said it was necessary to promote a transportation system that was less dependent on fossil fuels to salvage the country’s budget, which had long been plagued by the heavy burden of fuel and electricity subsidies.

For the long-term plan, Yudhoyono said he had instructed the Education and Culture Ministry, the Research and Technology Ministry, the State-Owned Enterprises Ministry as well as universities nationwide to develop Indonesian-made electric vehicles. (mtq)