Indonesia is considering spending $320 million in next year’s budget to boost purchases of electric vehicles (EVs), a senior minister said on Wednesday.
Buyers could get a discount for EVs made by firms with factories in Indonesia, as well as other incentives for electric motorcycles and hybrid cars, Industry minister Agus Gumiwang Kartasasmita said.
The government is also considering subsidising the sale of electric buses, he said.
Also on AF: China EV Giants Revved Up For European Sales Drive
Airlangga Hartarto, Indonesia’s chief economics minister, said at a news conference on Wednesday that authorities are detailing how much they could provide per sale based on a budget allocation.
Indonesia is targeting 20% of overall car sales in 2025 being EVs, he said.
President Joko Widodo told the same news conference: “We hope with these incentives, the electric motorcycle and electric car industry will grow”.
Indonesia has also tried to get US car giant Tesla to invest and produce not just EV batteries but also cars in the country.
Japanese brands currently dominate sales in the world’s fourth most populous nation, with Toyota the market leader. More than 942,000 cars were sold in the country from January to November this year.
- Reuters, with additional editing from Alfie Habershon
Read more:
It is Risky to Only Pursue EVs, Toyota Chief Says – WSJ
China EV-Maker BYD to Launch a Second New Brand in 2023
Warren Buffett Continues to Trim Stake in China EV-Maker BYD
