Jakarta (VNA) – Indonesia is considering incentives for nickel-manganese-cobalt (NMC) batteries as part of its strategy to accelerate the adoption of electric vehicles (EVs) powered by domestically sourced nickel, the country's Energy and Mineral Resources Minister Bahlil Lahadalia said on August 3.
Indonesia's Antara news quoted Bahlil as saying the proposed incentives reflect Indonesia's focus on developing an EV industry centred on nickel-based batteries. Lithium iron phosphate (LFP) batteries are not a priority, as the country lacks the raw materials needed to manufacture them.
Indonesia is building an integrated EV battery ecosystem based on its abundant nickel reserves, and its automotive industry roadmap will therefore continue to prioritise NMC battery technology.
In May, Indonesian Finance Minister Purbaya Yudhi Sadewa said the government was preparing an EV incentive programme targeting 100,000 electric cars and 100,000 electric motorcycles this year.
Under the proposal, buyers of electric motorcycles could receive subsidies of 5 million IDR (280 USD) per vehicle, while purchasers of electric cars could benefit from government coverage of 40–100% of value-added tax (VAT). The scheme is expected to apply only to battery electric vehicles, excluding hybrids.
Incentives for electric cars would be differentiated according to battery technology, with separate categories for nickel-based and non-nickel batteries.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the incentive programme would be aligned with the country's broader plan to develop national electric car and motorcycle industries. However, the government has yet to announce the final structure or implementation timeline of the policy./.
