Indonesia's Finance Minister, Sri Mulyani Indrawati, stated at a car exhibition event on Tuesday that the government will introduce measures in the coming weeks to boost the consumption of various electric vehicles, including electric bicycles.
The Finance Minister indicated that the incentive package is planned to cover 500,000 electric motorcycles and will be officially announced by President Prabowo Subianto within two to three weeks.
While the minister previously disclosed that the government would provide a purchase subsidy of 5 million Indonesian rupiah (approximately $277.24) per electric motorcycle, her remarks on Tuesday did not reiterate this specific subsidy amount.
At the exhibition, the minister also stated that for certain categories of electric vehicles, the government would implement a policy of up to a full exemption from Value Added Tax (VAT).
With Toyota Motor executives in the audience, the Finance Minister sent a clear signal: if the Japanese automaker relocates its main production factory from Thailand to Indonesia, she would approve any incentive application that Toyota proposes.
Indonesia has long aimed to become a regional automotive manufacturing hub, with the electric vehicle industry being a key component of this strategy.
The country has also set domestic electric vehicle adoption targets, aiming to have 2 million electric cars and 13 million electric motorcycles on its roads by 2030.
Comments