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)