Jakarta, IO – Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan announced the incentives to take effect on March 20. The policy aims to speed up the mass adoption of greener electric vehicles bt making them more affordable.
“The incentive program is a first step toward increasing the affordability of a wider range of electric vehicles, as well as to spur the development of automotive industry powered by new snd renewable energy,” Luhut said in a press conference on Monday (6/3), reported Detik.
He explained that the policy is in line with Presidential Decree 55/2019 on the acceleration of battery-based electric motor vehicles. The transition to electric vehicles also aims to make Indonesia a hub for renewable energy industry that has low carbon emissions.
According to him, the transition to electric vehicles so far is considered slow and this has impacted investors’ interest and the development of EV technology in Indonesia.
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“Mass adoption of electric vehicles is a crucial factor in achieving this ambition. However, it still hasn’t happened quickly enough due to the high prices of electric vehicles compared to conventional ones,” he concluded.
However, Luhut did not specify the exact amount of the incentive. There is still unsubstantiated information that the incentives for electric car purchase is Rp80 million, hybrid car Rp40 million, electric motorbike Rp8 million and Rp5 million for electric motorbike conversion. (bp)