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INDONESIA, 11 October 2022: Aiming to have 2.5 million electric vehicle users by 2025, Indonesia plans to start subsidizing electric vehicle purchases from next year.
Transport Minister Budi Karya Sumadi stated in an interview that the government is deciding on the new rule’s scope and specific mechanism and that it will be a “game changer” for the domestic industry.
Sumadi added, “Someone asked me why Indonesia is so ambitious with EVs. Perhaps because he doesn’t encounter air pollution from combustion engines in the same way that we do here.”
Introduced EV Policy
The IQAir index, which assigns rankings for air quality in 117 countries, places Indonesia 17th among the most polluted countries in the world.
As the largest manufacturer of nickel used in batteries in the world looks to cease exporting raw materials and move up the value chain, President Joko Widodo has implemented a number of EV policies over the past year. The current incentive is another addition to this list.
According to Sumadi, regulators are also thinking about providing subsidies for the conversion of internal combustion vehicles. Also, the idea will bring about a significant change in the labor-intensive automobile industry, which is why the government is closely considering it.
Borneo’s EV ecology
To create the EV ecosystem for the country’s planned capital city in Borneo, which is supposed to run entirely on renewable energy, the ministry will get in touch with established automakers in Indonesia including Hyundai Motor Co and China’s BYD Co.
In order to meet a target of 2 million users of electric motorbikes and 500,000 users of electric cars in less than 4 years, the government ordered earlier this year that all public offices switch to electric vehicles and instructed state utility PLN to increase the number of charging stations. In five years, Sumadi predicts that all public transportation will be electric.
Indonesian EV’s
As of October 3, there were approximately 28,188 electric vehicles in Indonesia, of which 4,904 cars and 22,942 motorcycles. Buses, Trucks, and three-wheelers make up the remainder.
Electric motorbikes will probably be the fastest-growing segment because their prices are catching up to those of their internal combustion equivalents more quickly than those of electric automobiles.
