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Indonesian car makers wait for more detailed ruling to start EV production
The electric vehicle regulation covers a number of issues including the production of batteries, the use of local components, charging stations and tax incentives.
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Industry Minister Airlangga Hartarto (yellow shirt) and executives of PT Nissan Motor Indonesia pose for photographers next to a Nissan Leaf, an electric car, during the opening of the 27th Gaikindo Indonesia International Auto Show in ICE BSD, Tangerang, and Banten on July 18. (JP/Rachmadea Aisyah)
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ndonesia’s automotive industry hailed the issuance of the long-waited regulation on electric vehicles (EV) early this month, which they said has provided a clearer picture about the widely anticipated EV production.
Association of Indonesian Automotive Manufacturers (Gaikindo) co-chairman Jongkie D. Sugiarto said that Gaikindo supported the new regulation as it had already provided a clear road map for the future development of the EV industry.
Jongkie, however, said that the industry players still waited for more specific regulations from relevant government institutions to determine what steps they would later take.
“Afterwards, brand holder agents will be able to decide what types of vehicles they will produce, which [components] will be imported or domestically produced,” he told The Jakarta Post by phone on Aug. 16.
Separately, the Indonesian Chamber of Commerce and Industry (Kadin) deputy chairman of industry, Johnny Darmawan, said the association also supported the new regulation but it should be well-implemented to protect the domestic automotive industry.
“We support it,” he said. “The next steps should be deliberately taken in realizing the vision,” he told the Post on Monday
Presidential Regulation No. 55/2019, which covers a number of issues including the production of batteries, the use of local components, charging stations and tax incentives for the production of the electric vehicles, was issued by President Joko “Jokowi” Widodo on Aug. 8.
