he Industry Ministry plans to undergo a trial of two models of electric cars produced by Japanese automaker Mitsubishi Motors Corporation by the end of this year as part of efforts to formulate a regulation to boost the use of such cars in the country.
The government is currently drafting a presidential regulation (Perpres) to boost the country’s electric-vehicle industry, in line with its plan to see 400,000 low carbon emission vehicles (LCEV) enter the Indonesian market by 2025.
After meeting with Mitsubishi Motors CEO Osamu Masuko in Japan in October, Industry Minister Airlangga Hartarto said the company would provide 10 prototypes of electric cars to help further research conducted by the Indonesian government to formulate the new regulation. Two models would be run on a trial basis by the year's end, he added.
“We expect the new regulation to be issued in the beginning of next year so that we can soon provide incentives to boost the use of electric cars,” Airlangga said.
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Automotive industry players have demanded the government provide several fiscal incentives, including exemptions from import duty and luxury tax (PPnBM) for the import of completely knocked-down (CKD) electric cars.
Several automakers have shown interest in developing electric vehicles in Indonesia, including PT Sokonindo Automobile, a joint venture between the Hong Kong-based Sokon Group and local firm PT Kaisar Motorindo Industri.
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