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More work needed to lure EV investors, say experts
Amid declining EV investment, experts are urging the government to foster an environmentally friendly, end-to-end EV ecosystem, introduce more affordable EV options, and encourage the industry to "race" against competitor countries in the region.
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Arwani Hidayat, chairman of the Indonesia Electric Car Community (Koleksi), points to the meter on a charger while charging his electric vehicle on April 12, 2023 at a charging station in Central Jakarta. (JP/Rachmat Kurniawan)
B
ack in 2019, the government unveiled a master plan that envisioned Indonesia becoming a dominant global force in the electric vehicle (EV) industry by 2030. With unwavering confidence in harnessing the country’s abundant natural resources – nickel being a key raw material for batteries – the goal was to foster downstream activities on its road to becoming an EV manufacturing hub.
Fast-forward four years and Indonesia’s EV investment is sluggish, while its neighboring countries are seizing greater opportunities.
President Joko “Jokowi” Widodo instructed his administration during a limited cabinet meeting on Monday to accelerate EV ecosystem development by offering more incentives.
After the meeting, Industry Minister Agus Gumiwang Kartasasmita told the media that the government would devise “more competitive” fiscal policies to beat those offered in countries like Thailand and Malaysia. The aim was to attract prospective investors interested in developing Indonesia’s EV ecosystem, Bisnis Indonesia reported.
Read also: Window closing for EV plan
Tenggono Chuandra Phoa, secretary-general of the Indonesian Electric Vehicle Industry Association (Periklindo), described the government’s move as “refreshing news for all of us”.
Speaking to The Jakarta Post on Monday, Tenggono stressed the need to enter a “race” against other countries competing for EV investments to avoid falling behind. Thailand and Malaysia introduced their EV incentives back in early 2022, he added.
