Indonesia has set 20% Electric Vehicle (EV) by 2025
Indonesia, South-East Asia’s largest economy has announced its target to produce more electric vehicles (EV). Indonesia sets an ambitious target on the adoption of electric vehicles with 2.1 million e-motorcycles and 400,000 e-cars (20% of all locally manufactured cars) expected to take the road by 2025. At present the government is preparing fiscal infrastructure and facilities to support the effort to enter the electric motor vehicle industry.
The Indonesian government put high hopes on the adoption of e-motorcycles, while the development of e-cars is directed at certain areas, such as industries, city, airport, offices, tourist areas, industries. The government also aimed the electric vehicles to be used in BRT systems, taxi and city bus.
In order to attract manufacturers and investors, Indonesia has put in place a tax incentive for battery producers and EV manufacturers. In addition, Indonesia is ready to offer preferential tariff agreements with some countries willing to source EVs from Indonesia.