TEMPO.CO, Jakarta - Vice President Jusuf Kalla said the government will provide incentives for the development of electric cars. The incentives include import duties and luxury goods' value added tax (VAT), Kalla said after opening the GIIAS 2017 automotive exhibition in Serpong, Friday.
Kalla said the incentives are given because the use of electric cars will reduce fuel consumption.
"Fuel is still subsidized, which means that [using electric cars] will also reduce the subsidy," he said.
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Industry Minister Airlangga Hartanto said the government has made regulations about the development of electric and hybrid cars; including regulating the production of eco-friendly vehicles at least 20 percent of the two million units of total production in 2025, or about 400,000 units.
"The quota can go to electric and hybrid vehicles," Airlangga said.
Kalla said that the provision of electricity is the government's way of supporting the development of electric cars. The government continues with its 23,000-MW power project to increase Indonesia's electrification ratio.
AMIRULLAH SUHADA