JAKARTA — Indonesia hopes to start the mass production of homegrown electric cars no later than 2028, President Prabowo Subianto said on Thursday (Aug 13), in an effort to increase the adoption of electric vehicles in Southeast Asia's largest economy.
Below are the details:
The president said the government is currently building a huge factory complex to manufacture the electric cars in the Subang region of West Java province.
Prabowo was referring to a 60-hectare development that aims to produce up to 50,000 vehicles annually and then expand into a 539-hectare facility with capacity of up to 300,000 vehicles per year, according to a statement from the government in June.
Prabowo announced the target at the launch of a national electric motorcycle programme, which aims to build an integrated ecosystem spanning manufacturing, batteries, charging and after-sales services.
To boost electric scooter sales, state-owned lenders will offer cheap vehicle loans with longer tenors, Rosan Roeslani, CEO of Indonesian sovereign wealth fund Danantara, said at the same event.
Prabowo said Jakarta is also considering a trade-in scheme for people to replace their conventional motorcycles with electric scooters.
Jakarta has said it may offer a 5 million rupiah (S$358) subsidy for each electric motorcycle bought in a total quota of 500,000 units, and was also considering a value-added tax exemption of up to 100 per cent for selected electric car purchases.
Indonesia has set a target to have 13 million electric motorcycles and two million electric cars on its roads by 2030.
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