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Indonesia Eyes $320-Million Incentive Plan to Boost EV Sales

Indonesia is targeting 20% of overall car sales in 2025 being electric vehicles, chief economics minister Airlangga Hartarto said

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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.

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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



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Alfie Habershon

Alfie is a Reporter at Asia Financial. He previously lived in Mumbai reporting on India's economy and healthcare for data journalism initiative IndiaSpend, as well as having worked for London based Tortoise Media.


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