Indonesia Striving to Speed Up Growth of Electric Vehicle Ecosystem, says Industry Ministry
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15 March 2023 13:49 WIB
TEMPO.CO, Jakarta - Indonesia's Industry Ministry is aiming to accelerate the growth of the battery-based electric vehicle (KBLBB) ecosystem in order to reduce fuel consumption.
"Regarding the technology development in KBLBB, we are pushing to accelerate the growth of the KBLBB ecosystem in Indonesia," the ministry's Secretary General Dody Widodo said at the “2023 Indonesia Leading Economic Forum 2023” seminar in Jakarta on Tuesday.
It is hoped that the KBLBB production target for 2035 of producing one million electric cars, which could help slash oil consumption by 12.5 million barrels, will be realized, he added.
By 2035, the ministry also expects the production of electric motorcycles to reach 12 million, which could help reduce oil consumption by 18.86 million barrels.
According to him, currently, there are 5 electric bus companies with a production capacity of 2,480 units per year.
Meanwhile, there are three electric car companies that have a production capacity of 29,000 units per year, and 45 two- and three-wheeled electric motorcycle companies with a production capacity of 1.04 million units per year, he informed.
Earlier, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan had assured that all automotive manufacturers would get incentives for electric car purchases.
For now, Hyundai and Wuling are the two electric car manufacturers that have met the required 40 percent domestic component level (TKDN) to avail the incentives.
Furthermore, the minister said that the quantum of incentives for electric cars would be announced soon.
To increase the use of electric vehicles, the government has issued an incentive policy by offering a purchase discount of Rp7 million per unit for 200,000 new electric motorbikes.
The government has also provided a discount of Rp7 million per unit for the conversion of 50,000 units of fossil fuel-based conventional motorcycles into electric ones, starting March 20, 2023.
In addition, the government is planning to provide incentives for the purchase of 35,900 electric cars and 138 electric buses by December 2023. However, the details of the plan are still under study.
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