Indonesia’s Jokowi urges investors to join EV push

Indonesian President Joko Widodo / Photo credit: Russian Presidential Executive Office

Indonesian President Joko Widodo expressed his ambition to promote the growth of the country’s electric vehicle industry at the Hannover Messe trade fair in Germany on Sunday, Nikkei Asia reported.

Jokowi said Indonesia is open to investment and collaboration to build downstream industries, including the domestic EV sector. The country aims to attract more foreign investment to boost various industries and to improve its human resources.

To promote EV adoption, Indonesia recently reduced the value-added tax on sales of battery-based EVs from 11% to 1%, focusing on vehicles whose components are at least 40% locally manufactured. This incentive program applies to both electric cars and buses.

In March, the Indonesian government announced a subsidy program worth nearly US$110 million, aimed at increasing sales and usage of EVs. This program has set a quota of 200,000 e-motorcycles, 35,900 electric cars, and 50,000 motorcycles converted to EVs within 2023.

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