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View all search resultsIndonesia doubles down on EV incentives to hit tipping point
The government expects EVs to account for 5 percent of domestic vehicle sales this year, determined not to fall behind Thailand in the race to become an EV export hub.
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People walk past parked Group of 20 Summit official electric vehicles in Nusa Dua, Bali, on Nov. 12, 2022. (AFP/Bay Ismoyo)
T
he government has stressed the importance of incentives for the purchase of electric vehicles (EVs) to reach the critical mass needed for further growth.
"The very first thing [to do in the EV industry] is to get traction. We need 10 percent of all new vehicles sold in a year to be electric," said Septian Hario Seto, undersecretary at the Office of the Coordinating Minister for Maritime Affairs and Investment.
Speaking at the Mandiri Investment Forum in Jakarta on Wednesday, Seto said he expected EVs to account for 5 percent of total vehicle sales this year, and twice that share in 2024.
That meant 600,000 electric motorcycles and 100,000 electric cars needed to be sold next year, he explained.
The burgeoning local market is deemed an important showcase for Indonesia's effort to attract more investors to develop the country's EV ecosystem.
Seto also expressed optimism that EVs made in Indonesia, beyond meeting local demand, could also be exported to other countries, facilitated by the increasing number of free trade agreements signed in the region.
Alexander Wachtmeister, managing director and senior partner at Boston Consulting Group (BCG), mentioned at the same event that EVs accounted for 8.3 percent of global car sales in 2021.
