OJK Explains obstacles on Electric Vehicles Credits

TEMPO.CO, Jakarta - The Chief Executive of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Companies Supervision of the Financial Services Authority (OJK) Agusman mentioned that electric vehicle (EV) credits are only part of 0.01% of the total EV financing scheme.

"With the rapid development of electric vehicles, the financing trend is projected to continue rising," Agusman said in a written statement quoted on Friday, October 13, 2023.

There are quite a few obstacles and challenges for EV credits from the perspective of financing industry actors, he added, one of which is the lack of charging stations for EVs.

Additionally, the relatively expensive prices, the limited availability of EV batteries in the market, and the uncertain resale prices of EVs. "The availability of electric vehicle insurance must also be considered," he said. According to Agusman, the risk of this product must be adapted, which is one of the concerns of the Indonesian General Insurance Association. 

OJK recorded previously that the loan growth in Indonesia increased by 16.33% y-o-y, or Rp453.16 trillion in August 2023, meanwhile, the non-performing financing increased by 2.66 % y-o-y.

AMELIA RAHIMA SARI

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