Indonesia to Launch Stimulus to Boost Electric Vehicle Sales, Minister Says

ELECTRIC VEHICLE - JAKARTA. Indonesia's government will launch measures in the coming weeks to boost the purchase of electric vehicles, including e-bikes, Finance Minister Purbaya Yudhi Sadewa said on Tuesday at an autoshow event.

The stimulus package will involve the sale of 500,000 electric motorbikes and will be announced by Indonesia's President Prabowo Subianto in the next two or three weeks, Purbaya said.

 

Purbaya has said previously that the government will provide a subsidy of 5 million rupiah ($277.24) for each electric motorcycle purchase, but he did not repeat that in his Tuesday remarks.

 

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Purbaya also said at the autoshow that the government will offer a value-added tax exemption of up to 100% on certain electric vehicle purchases.

 

In an apparent gesture towards executives of Toyota Motor Corp in the audience, Purbaya said he will grant any incentive request by the Japanese automaker if they move their main manufacturing plants from Thailand to Indonesia.

 

Indonesia has for a long time held the ambition to become a car manufacturing hub for the region, including for the production of electric vehicles.

 

It has also set EV adoption targets for the domestic market, with the aim of getting 2 million electric cars and 13 million electric motorbikes on the road by 2030.