According to Nikkei Asia, the Indonesian government recently announced that it will launch an electric vehicle subsidy program starting March 20, aimed at promoting domestic electric vehicle sales and production and attracting foreign investors to establish an electric vehicle industry chain in the country.
According to Indonesian Industry Minister Agus Gumiwang Kartasasmita, the program will cover the sale of 200,000 electric motorcycles and 35,900 electric cars, as well as the conversion of 50,000 conventional gasoline vehicles. The amount of the subsidy will be determined based on factors such as battery capacity, range and localization, with purchases of electric motorcycles eligible for a subsidy of Rp 7 million (about RMB 3,173), as will consumers who convert their internal combustion engine motorcycles to electric ones.
In addition, the Indonesian government will provide tax incentives, land lease exemptions, infrastructure support and other incentives for companies that invest in building electric vehicle production facilities in the country.
Indonesian President Joko Widodo (Joko Widodo) said that Indonesia has abundant reserves of key battery metals such as lithium and nickel, as well as a consumer market of more than 270 million, with the potential to develop a completely electric vehicle supply chain.
Leading companies such as Tesla, BYD and Hyundai Motor Company are reportedly close to reaching investment agreements with the Indonesian government. These companies are expected to establish facilities such as battery factories, assembly plants and R&D centres in Indonesia in the coming years.