Antara, Jakarta – The Coordinating Minister of Economics Airlangga Hartarto in an economic outlook event on Tuesday highlighted the competitiveness of Indonesia's electric vehicle ecosystem that must be on par with Thailand. A desire he claims has been mentioned personally by President Joko "Jokowi" Widodo.
The government is currently finalizing regulations regarding the use of electric vehicles and the plan is to provide an electric motorcycle incentive of Rp 7 million.
According to Airlangga, the electric vehicle incentive amount applies to every purchase of a new electric motorbike or conversion. As for the number of electric car incentives, he added, it is still under consideration.
"Thailand provides incentives of around Rp 80 million per electric car," he said in the CNBC Economic Outlook 2023.
He further explained that the electric vehicle incentive only applies to those produced domestically. the decision was taken to encourage the downstream industries of the electric vehicle ecosystem in order to improve its manufacturing ecosystem.
According to Airlangga, the manufacturing sector is currently improving with the Purchasing Managers' Index (PMI) at the level of 51.3 in January 2023. This is in line with the performance of automotive sales which reached a record 1.04 million units throughout 2022.
"Even our automotive exports have increased by 60 percent and have been exported to more than 70 countries," Airlangga added.