A senior Indonesian minister reportedly announced plans to spend 5 trillion rupiahs ($320.41 million) from 2023’s budget to encourage the purchase of electric vehicles, as per Reuters. However, the plan’s specifics were still being worked out.
It is worth noting that this strategic plan is part of Indonesia‘s broader effort to achieve its 2025 target of selling 20% of EVs of overall car sales.
What is currently known about the plan?
Industry Minister Agus Gumiwang Kartasasmita recently stated that the Indonesian government would offer an 80 million rupiah discount for buyers of EVs made in the country. Hybrid vehicles and electric motorcycle buyers will also receive significant incentives, while electric buses are still being contemplated.
Additionally, sellers of these new energy vehicles will also get subsidies as the government aims to compensate for the costs.
“We hope with these incentives, the electric motorcycle and electric car industry will grow.”
Indonesia President Joko Widodo
However, Chief Economic Minister Airlangga Hartarto said that the government is still determining the amount it can offer in terms of subsidies per sale. Notably, it should depend on the budget allotment.
These initiatives demonstrate that Indonesia has established clear objectives for boosting the adoption of electric vehicles. Similar incentive schemes have been successful in other nations when commuters willingly switched to electric cars because of the cheaper ownership costs and other advantages.
