Govt Urges MSMEs to Help Develop EV Ecosystem in Indonesia
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28 November 2023 22:56 WIB
TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto on Tuesday, Nov. 28, 2023, urged the micro, small, and medium enterprises (MSMEs) to become involved in developing the electric vehicle (EV) ecosystem in Indonesia.
"We hope that the MSMEs will become part of the EV ecosystem, especially to become suppliers of components for electric motorcycles," he said at the Inabuyer EV Expo 2023.
He affirmed that Indonesia is committed to reducing greenhouse gas emissions, specifically 358 million tons of CO2, by 2030.
According to him, the development of the EV ecosystem has continued to increase because Indonesia has sufficient nickel raw material needed for making EV batteries.
He said that the growing investment and increasing sales of electric motorcycles have pushed forward the EV ecosystem in the country.
Meanwhile, the government is providing several subsidies for electric vehicle purchases, including a subsidy of Rp7 million for the purchase of e-motorcycles and conversion to electric motorcycles.
The government is also giving incentives for electric cars and buses with a minimum domestic content level (TKDN) of 40 percent.
In addition, a government-borne value added tax (PPN DTP) incentive of 5 percent is also being provided for electric buses with 20–40 percent TKDN.
Deputy for Small and Medium Enterprises (SMEs) at the Ministry of Co-operatives and SMEs Hanung Harimba Rachman said that domestic MSMEs have started producing electric vehicle components.
There are at least 800 MSME players supporting EV ecosystem development, he informed.
Rachman said that there are some great opportunities for MSMEs to enter the EV ecosystem, for instance, they could become distributors, dealers, provide charging services, and set up conversion workshops, as well as battery or motorcycle rental services.
"Then in the component industry, there are many who can make battery pack controllers and so on," he added.
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