The government plans to provide incentives for electric car buyers. But not all electric car buyers are eligible for subsidies. The subsidy is granted to consumers who buy electric cars that already have factories in Indonesia.
Of the dozens of electric cars sold in Indonesia, only two are made in Indonesia. The two models are the Wuling Air ev and the Hyundai Ioniq 5. The general requirements are not without reason, but Indonesian-made electric cars are more in demand than the CBU (Completely Build-up) versions.
“I think the important point is how to add value, so the important thing is that it is domestically produced and add value. I think friends can have their say on buying Indonesia-made electrical products,” he said General Manager of Metal, Machinery, Transportation Equipment and Electronics Industry Taufiek Bawazier at the 2022 Year-End Press Conference and 2023 Industry Outlook Seminar.
Taufiek stressed that the Ministry of Industry aims for 20% of vehicles circulating in Indonesia to be electric cars or up to 400,000 units by 2025. It is believed that the provision of incentives is able to increase the sales of electric cars so that they can achieve the pre-established objectives.
So far, the amount of the incentives for electric cars has not been defined. However, earlier the Minister of Industry Agus Gumiwang Kartasmita said that the amount was around IDR 80 million for electric cars, IDR 40 million for hybrid cars, IDR 8 million for electric motorcycles and 5 million IDR for convertible motorbikes.
“In principle, the government really supports the development of the electric-based automotive industry. We are making these accelerations,” said Agus.
Meanwhile, there are reports that the subsidies for electric vehicles will take effect from June 2023. However, Agus stressed that the government has yet to confirm when these subsidies will start to be granted.
Agus also said the formula for determining who will receive the subsidy has not yet been decided. According to him, the next meeting to discuss incentives for electric vehicles is estimated to be held in the first week of January 2023.
Watch a video “RI subsidizes IDR 80 million for electric cars, how about other countries?“