Riani Sanusi Putri, Jakarta – The Indonesian Chamber of Commerce and Industry (Kadin) revealed that the adoption of electric vehicles or EV in Indonesia is still behind that of neighboring countries, Malaysia and Thailand. Referring to a McKinsey study in 2021, Kadin chairman Arsjad Rasjid said the country's EV adoption only stood at 0.1 percent.

Meanwhile, the figure in Thailand and Malaysia amounted to 0.7 percent and 0.3 percent, respectively. Because of that, Arsjaf hoped that the incentives for the purchase of electric cars and buses can be carried out soon after the incentives for the electric motorbike are implemented.

"This incentive will accelerate electrification and achieve the energy transition target," said Arsjad in a statement on Friday, April 14, 2023.

According to Arsjad, the delay in EV adoption in the archipelago is attributable to the high prices, which caused people hesitant from switching to battery-based vehicles.

Thailand and Malaysia, Arsjad said, granted various incentives that encourage their people to adopt EVs. "For this reason, various incentives are issued to help society and the EV industry ecosystem in Indonesia develops faster," he explained.

Arsjad believed that the incentive program is the right strategy as it will attract various EV manufacturers that are more interested in Thailand and Malaysia. According to him, this step could be Indonesia's game-changer for the EV industry.

The Indonesian government targeted the adoption of electric vehicles of up to 2 million units by 2025 as noted in Presidential Regulation (Perpres) Number 55 of 2019.

Source: https://en.tempo.co/read/1715164/kadin-indonesias-ev-adoption-lags-behind-thailan