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Indonesia to subsidize EV purchase in 2023

Indonesia to subsidize EV purchase in 2023

The Indonesian government is likely to provide electric vehicle subsidies starting from next year in order to stimulate the market and reduce pollution, Chinese media says, ultimately citing a Bloomberg interview. It aims to reach an EV user volume of 2.5 million by 2025. 

Budi Karya Sumadi, Indonesia's minister of transportation in Joko Widodo's administration, says: "Someone asked me why Indonesia so ambitious with EVs. Maybe because he doesn’t experience the same thing as we do here in terms of air pollution coming from combustion engines. The government is studying the plan carefully, as it will create a major shift in the labor-intensive automotive industry."

Some sources disclosed that global leading automakers such as Chinese BYD and South Korean Hyundai have been negotiating with the Indonesian government on constructing a brand-new EV ecological system in its new capital located in Kalimantan Island, Kallanish learns. 

In addition to tighter exports of vital EV battery metal resources such as nickel, the Indonesian government has shown more dominating power in promoting the EV adoption within its state government offices, as well as accelerating the construction expansions of EV related facilities. The public transportation of Indonesia is expected to realise full electrification in five years. 

According to data from the Indonesian government, as of 3 October, Indonesia has 28,188 EVs, of which 22,942 are motorcycles, 4,904 are cars, and the rest are buses, trucks, or three-wheelers. 


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