Indonesia pursues the production of 600 thousand electric cars by 2030
Minister of Industry Agus Gumiwang Kartasasmita said the government is targeting production of battery-based or pure electric cars by 2030 to reach 600 thousand units. Meanwhile, the production of electric motorbikes is targeted to reach 2.45 million units.
Agus said the production target is expected to reduce CO2 emissions by 2.7 million tons for four wheels and more and 1.1 million tons for two wheels.
In order to encourage all of this, Agus said the government has provided various fiscal and non-fiscal incentives.
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Production Target of 2 Million Units of Electric Cars and Motorcycles by 2025
For example, for electric vehicle consumers in the form of PPnBM imposition of zero percent, imposition of Regional taxes (PKB and BBNKB) at a maximum of 10 percent of the basic imposition of PKB or BBNKB, minimum down payment of 0 percent and low interest rates, discounts on electric power connection, license plates special, and other incentives.
Meanwhile, industrial companies can take advantage of various incentives such as tax holidays, mini tax holidays, tax allowances, exemption from import duties, government borne duties, and super tax deduction for RD&D activities.
Agus said that so far only three domestic industrial companies have built production facilities for four-wheeled electric vehicles or more with a capacity of 1,480 units per year.
Agus added that the automotive industry is one of the mainstay sectors that has a significant contribution to the national economy. Currently, there are 21 companies in the motorized vehicle industry with four or more wheels in Indonesia.
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Thailand's target to produce 18 million units of electric vehicles by 2035
They have invested up to IDR 71.35 trillion for a production capacity of 2.35 million units per year. This sector is said to be capable of absorbing a direct workforce of 38 thousand people and more than 1.5 million people who work along the industrial value chain.
"The production performance of four-wheeled vehicles or more in the January-February 2021 period, was recorded at 152 thousand units, and sales (wholesales) of 102 thousand units for the same period," said Agus quoting the official website of the Ministry of Industry, Thursday (1/4) .
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