Indonesia Aims to Boost Electric Vehicle Market Share by 10 Percent
2 February 2023 13:16 WIB
TEMPO.CO, Jakarta - The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan plans to accelerate the adoption of electric vehicles. The government aims to increase the share of the domestic electric vehicle market by up to 10 percent.
Luhut believes one way to increase it is by providing incentives for electric vehicles and electric motorbike conversions and reducing taxes on electric cars, Antaranews reported.
This step is considered to have an impact on the national fuel consumption which uses up to as much as 70 billion liters of fuel per year consumed by vehicles powered by internal combustion engines.
"We will continue to push for electric vehicles. In 2023-2024, we will push for a 10 percent market share for EVs and electric motorbikes. That way we can reduce emissions and import fuel," he said at the 2023 Mandiri Investment Forum (MIF).
"Fuel consumption reaches 70 billion liters a year. Can you imagine this figure? So if we push 10 percent (electric vehicles), we will be able to reduce fuel consumption," Luhut explained.
In order to achieve 10 percent market share, sales of electric motorbikes must reach around 600,000 units. Meanwhile, sales of electric cars must reach around 100,000 units. He hopes the electric vehicle incentives will help boost the adoption of EVs.
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