EV Purchase Subsidies Planned To Promote Sales
SOUTHEAST ASIA: 6 MAJOR COUNTRIES REPORT
Indonesia plans to introduce a subsidy program to encourage the purchase of EVs starting in 2023. The goal is to increase the number of EV users to 2.5 million by 2025 and reduce air pollution. The EV purchase subsidy program will be added to the list of EV policies introduced by President Joko Widodo over the past year.
Transportation Minister Boudi Karya Sumadi said the government is also considering subsidies for retrofitting internal combustion engine vehicles, but the government is carefully considering this plan because it would bring major changes to the labor-intensive auto industry. The Ministry of Transport plans to approach existing Indonesian automakers, such as South Korea’s Hyundai Motor and China’s BYD, to create an EV ecosystem for Borneo’s new capital city, he said.