Indonesia Revs Up for Electric Vehicles: Jokowi Pushes Industry Growth

20 Mar 2024

Articles

(source: https://www.bloomberg.com/news/articles/2022-10-17/indonesia-s-state-firms-to-use-only-evs-by-2025-in-net-zero-push)

Indonesia Revs Up for Electric Vehicles: Jokowi Pushes Industry Growth
By Johana

Indonesia is poised for a significant shift in its automotive industry, with electric vehicles (EVs) taking center stage. President Joko Widodo (Jokowi) has emerged as a strong advocate for this transition, emphasizing the nation’s potential to become a major player in the global EV market. This drive towards electrification is evident at the recently concluded 2024 Indonesia International Motor Show (IIMS). The event served as a platform to showcase a range of electric cars and innovative technologies, attracting a significant number of visitors and generating considerable revenue. Notably, BYD Indonesia, a new entrant in the market, made its debut at IIMS 2024, signifying the growing interest in the EV sector.

President Jokowi’s belief in electric vehicles stems from Indonesia’s abundant natural resources, particularly nickel, a critical material in EV batteries. This strategic advantage positions Indonesia to not only be a major consumer of EVs but also a potential hub for EV production. The government is actively implementing measures to support this vision. One key initiative is the reduction of value-added tax (VAT) on electric vehicles. This financial incentive aims to stimulate EV adoption and make them more accessible to consumers. Additionally, the government is keen on attracting foreign investment in EV production facilities within Indonesia. President Jokowi’s visit to the booth of VinFast, a Vietnamese car manufacturer, during IIMS 2024 underscores this commitment to foreign collaboration.

Furthermore, establishing a domestic EV battery production industry is crucial for the government, reducing reliance on external sources and creating a more robust, self-sufficient EV ecosystem within Indonesia. The combined efforts of the government, along with the growing interest from foreign investors, paint a promising picture for Indonesia’s future in the electric vehicle landscape. Singaporean companies like ION Mobility and Oyika are already making significant contributions by assembling electric motorcycles and establishing battery swap stations, respectively. These developments, coupled with the government’s continued support, will lead to a significant increase in EV sales in Indonesia. This transition towards electric mobility presents a sustainable solution for the nation’s transportation sector, reducing dependence on fossil fuels and paving the way for a cleaner future.

In conclusion, Indonesia is taking decisive steps to establish itself as a major player in the global electric vehicle market. President Jokowi’s leadership, coupled with the nation’s abundant natural resources and strategic government initiatives, are creating a favorable environment for the growth of the EV industry. As foreign investors join the scene and domestic production capabilities are strengthened, Indonesia is well on its way to achieving a sustainable and electrified transportation future.

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