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Govt details purchase incentives for locally produced EVs
Indonesian government is finalizing an incentive scheme for the purchase of electronic vehicles (EVs) produced by manufacturers inside the country, in a bid to force industry players into realizing their investment.
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Electric car gets charged in a demonstration booth in this undated photo. (Shutterstock/buffaloboy)
T
he Indonesian government is finalizing an incentive scheme for the purchase of electronic vehicles (EVs) produced by manufacturers inside the country, in a bid to force industry players into realizing their investment.
“The government is now calculating the incentives. These incentives are […] formulated after studying numerous regulations from [other] countries with relatively higher-usage rate of EVs,” said Industry Minister Agus Gumiwang Kartasasmita on Wednesday in Brussels, as quoted from his ministry’s official statement.
He revealed the amount of incentives would vary for different kinds of vehicles, detailing that each electric car is lined up for Rp 80 million (US$5,122) worth of incentives, while hybrid ones are set to get around Rp 40 million each.
Agus furthermore detailed that each electric-motorcycle purchase would be outlined for around Rp 8 million of incentives, while “motorcycles converting to electric motorcycles get around Rp 5 million”.
Agus said the incentive plan had been proposed due to how further EV adoption could bring plenty of benefits, mainly thanks to Indonesia’s possession of the largest global nickel reserve — which would almost certainly help, given that nickel is the rudimentary material for EV batteries.
Vast EV adoption can help Indonesia’s fiscal budget as it would reduce fossil-fuel subsidy significantly, with the added benefit of proving to the global community that Indonesia can reduce carbon emissions, said Agus.
On top of that, he continued, the incentive plan is hoped to pressure electric car or motorcycle manufacturers to realize their investment plan in Indonesia.
