Indonesia Plans USD 320 Million Incentives to Spur EV Sales in 2023

Jan 2023

Indonesia is considering spending USD 320 million in its 2023 budget to incentivize purchases of electric vehicles (EVs), as stated by Indonesia’s Industry Minister. According to the minister, purchasers of EVs manufactured in Indonesia may receive an IDR 80 million (USD 5,311) discount, as well as additional incentives for electric motorbikes and hybrid automobiles. The government plans to offer subsidies to sellers to cover the costs.

Indonesia’s Chief Economic Minister, Airlangga Hartarto, claimed that officials are outlining how much they may offer for each transaction, depending on the budget allotment. He added that the government is also contemplating subsidizing electric bus sales.

EVs are expected to account for 20% of total automobile sales in Indonesia in 2025. SGMW Motor Indonesia, a joint venture of SAIC Motor Corp Ltd., General Motors Co., and Wuling Motors Holdings, operates an EV assembly factory in Indonesia. Toyota Motor Corp., Mitsubishi Motors Corp., and Hyundai Motor Co. have all invested in or announced plans to engage in EV manufacturing in Indonesia. Indonesia has also attempted to entice Tesla to invest in the nation to make not just EV batteries but also automobiles.

(Sources: Reuters; Asia Financial)

About Us

Orissa International helps companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 companies that includes distributors, resellers, system integrators and local manufacturers, that we have built through advising and guiding more than 5,000 companies with their market expansion into the ASEAN region over the last 25 years.

Orissa International is headquartered in Singapore, with additional offices in Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.

Our Services