President Joko 'Jokowi' Widodo says he has signed the long-awaited presidential regulation (Perpres) on electric vehicles (EVs), three weeks after his minister revealed the plan.
Speaking to reporters on Thursday, Jokowi stated he had signed the regulation on Monday morning. Last month, Finance Minister Sri Mulyani Indrawati had said the President was set to sign the regulation before July 21.
"We know that 60 percent of the key to electric cars is the batteries and we have the components to make them [such as] cobalt and manganese in our country," Jokowi said as quoted in a press statement from setkab.go.id. "So, this country is a strategic place [for businesses] to start designing an affordable and competitive electric car industry."
Jokowi went on to say that most electric cars available in the market today were about 40 percent more expensive than fossil-fueled cars.
Therefore, he hoped that Indonesia's ubiquitous resources of materials required for making the batteries would help push prices down, thus creating greater demand for the EVs.
"In Jakarta, I think we can start with our buses and public transportation as well as taxis," he added.
According to a draft presented by Sri Mulyani recently, the Perpres would stipulate fiscal incentives, such as import tariff incentives for battery-based EVs and their supporting technology and materials, as well as value-added tax deductions and tax incentives for imported goods related to investments in the EV industry.