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Indonesia to support sales of electric vehicles

Indonesia will provide incentives to boost sales of battery-based electric vehicles (KBLBB) starting March 20, as part of efforts to encourage the use of this type of vehicle and attract investment into domestic production, a senior cabinet minister has said.
Indonesia to support sales of electric vehicles ảnh 1Indonesian government will subsidise the sales of 200,000 electric motorcycles and the conversion of 50,000 combustion engine motorcycles this year. (Photo: autonetmagz)

Jakarta (VNA) - Indonesia will provide incentives toboost sales of battery-based electric vehicles (KBLBB) starting March 20, aspart of efforts to encourage the use of this type of vehicle and attractinvestment into domestic production, a senior cabinet minister has said.

Speaking at a press conference on March 6, Coordinating Minister of Maritime Affairsand Investment Luhut Pandjaitan said the use of KBLBB will helppromote sustainable development by reducing greenhouse gas emissions andbuilding a domestic battery industry, thereby creating jobs and increasing budgetrevenue.

Meanwhile, head of the Fiscal Policy Agency under theMinistry of Finance Febrio Kacaribu announced that the government will subsidise the sales of 200,000 electric motorcycles and the conversion of 50,000 combustionengine motorcycles this year. The support for each vehicle is 7 million Rp (457 USD).

The programme is only applied to domestically producedmotorcycles with a localisation rate of 40% or more. Manufacturers of electricmotorcycles that meet this criteria are not allowed to increase their sellingprices during the support period and commit to producing a sufficient number ofvehicles for the programme.

According to Secretary General of the Ministry of Energy andMineral Resources Rida Mulyana, KBLBB can help users and government save 2.77million Rp and 32.7 billion Rp respectively per year, while reducing0.03 million tons of greenhouse gases and increase employment, althoughelectricity consumption will increase by 15.2 GWh per year.

Earlier in January, Coordinating Minister for Economic Affair Airlangga Hartarto said Indonesiamay allocate 5 trillion Rp from this year’s budget to encourage peopleto buy electric vehicles (EVs).

According to Airlangga, Indonesia targets 20% of EVs in overall car sales in 2025. Companies that have invested or have announced planned investments in EVmanufacturing in Indonesia include Toyota Motor Corp, Mitsubishi Motors Corpand Hyundai Motor Co./.

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