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Indonesia Striving to Speed Up Growth of Electric Vehicle Ecosystem

March 15, 2023, 01.13 PM

JAKARTA, - Indonesia's Industry Ministry is aiming to accelerate the growth of the battery-based electric motorized vehicle (KBLBB) ecosystem to reduce fuel consumption.

"Regarding the technology development in KBLBB, we are pushing to accelerate the growth of its ecosystem in Indonesia," the ministry's Secretary General Dody Widodo said at the “2023 Indonesia Leading Economic Forum 2023” seminar in Jakarta on Tuesday, March 14.

It is hoped that the KBLBB production target for 2035 of producing one million electric cars – which could help slash oil consumption by 12.5 million barrels – will be realized, he added.

By 2035, the ministry also expects the production of electric motorcycles to reach 12 million, which could help reduce oil consumption by 18.86 million barrels.

Also readMinistry Announces Incentives on Electric Bike Program

According to him, currently, there are five electric bus companies with a production capacity of 2,480 units per year.

Meanwhile, three electric car companies have a production capacity of 29,000 units per year, and 45 two-and three-wheeled electric motorcycle companies with a production capacity of 1.04 million units per year, he said.

Earlier, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan had assured that all automotive manufacturers would get incentives for electric car purchases.

For now, Hyundai and Wuling are the two electric car manufacturers that have met the required 40 percent domestic component level (TKDN) to avail of the incentives.

Furthermore, the minister said that the quantum of incentives for electric cars would be announced soon.

Also readElectric Vehicle Battery Production in Indonesia Expected to Start Next Year

To increase the use of electric vehicles, the government has issued an incentive policy by offering a purchase discount of seven million rupiah per unit for 200 thousand new electric motorbikes.

The government has also provided a discount of seven million rupiah per unit for the conversion of 50,000 units of fossil fuel-based conventional motorcycles into electric ones, starting March 20 this year.

In addition, the government is planning to provide incentives for the purchase of 35,900 electric cars and 138 electric buses by December. However, the details of the plan are still under study.

Source: State News Antara

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