Indonesia seeks measures to reduce domestic EV prices

Minister of Industry Agus Gumiwang Kartasasmita in Jakarta on March 28, 2024. (Source: ANTARA/Muzdaffar Fauzan)

Jakarta (VNA) - Indonesia will be able to cut the domestic prices of electric vehicles (EV) by up to 30% by taking the initiative to manufacture its own EV batteries, Minister of Industry Agus Gumiwang Kartasasmita said as reported by the national news agency Antara.

In his recent remarks in Jakarta, the minister said he believes that the prices will drop by 20-30%.

He noted that EV batteries had been quite costly, with their prices equivalent to 40-50 percent of the vehicle cost.

According to him, in addition to decreasing the prices of electric cars, domestically manufactured EV batteries would lead to an increase in the value of the domestic component level (TKDN) of such vehicles.

He expressed optimism that they would also attract more businesses to invest in the country.

Earlier, Kartasasmita revealed that French and Vietnamese automotive companies, Renault and VinFast, have voiced their readiness to pour capital into Indonesia. He said that the ministry has been in close coordination with them and that their investments are expected to support the development of an EV ecosystem in the nation./.

VNA