Chandni Vatvani and Jalelah Abu Baker, Jakarta: Indonesian Gunawan, who goes by one name, is in the market for his family's second electric vehicle. He was encouraged by his son's driving ease.
"My son's experience with EVs has been very easy. He just goes to service the car every six months, they check it, and the cost is definitely much cheaper than a conventional car," he told CNA.
Gunawan is part of a growing group of Indonesians opting for EVs.
Latest data from the Association of Indonesian Automotive Industries (Gaikindo) showed that sales of electric cars from January to August this year surged by 177 per cent year-on-year and contributed over 4 per cent to total national car sales.
Indonesia is aiming to have 2 million electric cars and 13 million electric motorcycles on its roads by 2030.
Chinese EV makers in Indonesia
Chinese car makers are the most popular in Indonesia's EV market, surpassing other Asian competitors.
According to September sales figures by Gaikindo, the best-selling electric cars were from Chinese brands BYD, Wuling and Chery.
Recently, Beijing pledged to ramp up its investment in Indonesia's EV industry, after a bilateral meeting between both countries' top diplomats in a bid to help Jakarta chase its EV dream.
Indonesian authorities have set a production target of 600,000 EV units by 2030.
Already boosting the industry is Chinese carmaker Wuling, which inaugurated its factory in West Java in 2017 and currently produces 120 electric vehicles per day. These vehicles are sold to the Indonesian market and exported as well.
Wuling is planning to expand its EV services.
"For the future, we want to expand again where we want to build an electric car battery facility here. And we have scheduled for the production of electric car batteries to begin at the end of 2024," said public relations manager at Wuling Motors Indonesia Brian Gomgom.
BYD, the world's largest EV manufacturer, is also investing US$1.3 billion to build an EV plant in Indonesia. Factory operations are expected to begin in January 2026. Its investment in the country is expected to contribute to the industry, economy and jobs.
Incentives for EV manufacturers
Firms like BYD and Wuling wanting to have a presence in Indonesia is a result of the country actively courting the EV market.
The incentives for EV makers include a removal of the luxury tax on EVs for 2024, the waiver of import tax until 2025, and a reduction in value-added tax on the sale of EVs – provided the EV incorporates 40 per cent locally made components.
However, there are concerns over what the change in the nation's political landscape could mean.
"The government has a good initiative in supporting the energy transition to something better," said BYD Indonesia's head of marketing, public and government relations Luther Panjaitan.
"However, as we know, Indonesia is also facing a change of government. Of course, what we hope for and what we target most is that this EV policy will be more consistent or even better."