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Jakarta Post

Long way to go before Indonesia produces electric vehicles

  • Adrian Wail

    The Jakarta Post

Jakarta   /   Wed, October 2, 2019   /  02:52 pm
The Jakarta Post Image
Finance Minister Sri Mulyani tries out a Toyota Prius plug-In hybrid electric vehicle at the 27th Gaikindo Indonesia International Auto Show in BSD City, Tangerang, Banten, in July. Local electric car manufacturers have called on the government to provide fiscal incentives to make electric vehicles more affordable. (ANTARA FOTO/Muhammad Iqbal)

Local electric vehicle (EV) makers need fiscal incentives and regulatory simplicity in order to strengthen their presence in the world’s fourth most populous country and help the government realize its ambition to establish a strong EV manufacturing industry. Without incentives and business-friendly regulations, the government plan to establish a strong electric vehicle manufacturing industry will be difficult to materialize. Local EV maker PT Great Asia Link (GRAIN) expert staff member Robert Aritonang said the company would need fiscal incentives from the government to produce its vehicles, citing the high cost of EV components and import tariffs as the main aspects that hampered the local industry. “I am asking the government to provide EV makers with fiscal incentives, such as an import [tax] waiver, at least for the pilot project, so that we can cut production c...