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Indonesia’s electric car dream on rocky road
Manufacturers say two years enough to prepare EV models.
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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)
T
he government under the leadership of President Joko “Jokowi” Widodo has set an ambitious target in developing electric vehicle (EV) manufacturing, partly as an effort to help boost the industry, which looks like a Herculean task, according to industry players and the World Bank.
It expects the local automotive industry to begin domestic EV production by 2021 or 2022 to reach the target of exporting 200,000 electric cars by 2025, around 20 percent of the expected total of 1 million car exports in the year. Jokowi has issued a presidential regulation that regulates and incentivizes the EV industry to spur its growth, although it still lacks supporting regulations from other ministries before the cars can hit the road.
“I question the government’s readiness in preparing the regulations related to the vehicles’ licenses from the Trade Ministry, the Industry Ministry and even the Transportation Ministry,” said automotive expert Bebin Djuana on Tuesday. “If they fail to precede the manufacturers’ preparations, it will be an odd thing to see the cars unregulated.”
Bebin urged the government to move faster in issuing the regulation as a two-year period was enough for domestic car manufacturers to prepare their EV models.
After the presidential regulation was issued, several other relevant ministries began preparing regulations to support the government’s EV policy. The Finance Ministry is currently finalizing a government regulation that will lower the luxury goods sales tax (PPnBM) for electric cars while the Environment and Forestry Ministry is preparing a regulation on battery waste mitigation.
The National Police are working on the registration and identification of EVs as the Industry Ministry is also preparing a domestic manufacturing regulation and the Energy and Mineral Resources Ministry is working on regulations on electrical power supply and the standardization of power outlets.
Association of Indonesian Automotive Manufacturers (Gaikindo) chairman Johannes Nangoi said the industry cautiously welcomed the government’s latest policy direction. “We have to quickly follow [the electric vehicle regulation], otherwise the Indonesian market will not develop,” said Johannes.
