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The Jakarta Post
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Without incentive, electric car prices would be 30% higher: Minister

  • News Desk
    News Desk

    The Jakarta Post

Jakarta | Tue, November 14, 2017 | 01:08 pm
Without incentive, electric car prices would be 30% higher: Minister Industry Minister Airlangga Hartarto said the incentive could be given to the institutions that had carried out research on electric car components like electric motors, batteries and power control units. (Antara/Wahyu Putro)

Industry Minister Airlangga Hartarto said fiscal incentive was an important part of the efforts to encourage electric car development because without incentives the prices of electric cars would be 30 percent higher than the conventional ones.

“Currently, the manufacturers have already had the technology. They are waiting for the incentive because they have to use double engines,” said Airlangga in a statement on Monday as reported by Antara.

Regarding fiscal incentives, he said he had coordinated with the Financial Ministry. He hoped the ministry would make a decision on the incentive by the end of this year.

He said the incentive could be given in stages based on the commitments of the manufacturers.

Read also: Indonesia aims for market share of electric cars to reach 20% by 2025

He also said the incentive could be given to the institutions that had carried out research on electric car components like electric motors, batteries and power control units.

Such incentive would encourage automotive producers to carry out research and development, he added.

Airlangga expressed his appreciation to PT Nissan Motor Indonesia, which has developed electric car Nissan Note e-Power.

He conducted a test drive on the car. “The car is powerful because it uses a full electric-vehicle (EV) engine. I was driving up to 80 kilometers per hour,” he said after conducting the test drive. PT Nissan Motor Indonesia president director Eiichi Koito said the e-Power from Nissan was an innovative solution to introduce a powerful electric vehicle. He added that the e-Power was introduced in Japan for the first time in 2016. (bbn)

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