Jokowi signs decree to start EV industry in Indonesia

Jokowi signs decree to start EV industry in Indonesia

Indonesia’s plan to kickstart an electric vehicle (EV) industry is official. According to the republic’s cabinet secretariat, Indonesian President Joko Widodo yesterday signed a decree that lays out government support to build an EV industry, reported by Reuters.

The president, popularly known as Jokowi, did not elaborate, but a draft of the decree seen by the newswire ahead of the signing contained a series of incentives to boost both the production of EVs and adoption by motorists. Jokowi said in the statement that the key to the EV industry is in the construction of the batteries they run on and the “raw materials to make a battery: cobalt, manganese and others, we have in this country.”

The region’s most populous country and largest economy is resource-rich, and has been seeking to carve out a downstream industry based on its supplies of nickel laterite ore, which is used in the manufacture of lithium batteries.

“The business strategy can be designed in this country so that we can get ahead of others in building an inexpensive electric car industry, which is competitive because the raw materials are here,” the recently re-elected president said on the sidelines of an event at the ASEAN headquarters. He however warned that to build an EV industry from scratch would take longer than “a year or two,” since it must also create a new market.

Jokowi also suggested that city administrations across the country could provide more incentives, such as free parking or free administrative fees, to further support EV adoption by motorists and public transport companies.

It was previously reported that the draft government strategy contained measures are aimed at accelerating the adoption of battery-powered cars in Indonesia and building a base for the production and export of EVs. They include lower taxes for manufacturers and buyers of the cars, and benefits for EV owners, such as special parking areas.

Jokowi signs decree to start EV industry in Indonesia

The new rules would change the way vehicles are taxed in Indonesia, from body type and engine size to fuel consumption and CO2 emissions. The report drew a comparison between a BMW X3 and a Toyota Camry Hybrid; the SUV attracts a lower luxury tax rate than the cheaper Camry, because sedans are considered a more luxurious car type under the current rules, never mind that it’s a hybrid.

According to the draft, the upcoming rules will also require carmakers to gradually increase the amount of locally produced parts to 80% by 2029. Motorcycle producers would need to reach that level in 2026. Indonesia aims to be an EV hub for the region and beyond, with a target to start EV production in 2022 and for the share of EVs to reach 20% of total car production by 2025.

Market leader Toyota and South Korea’s Hyundai have earmarked investment of US$2 billion and US$880 million, respectively, to develop EVs in Indonesia over the next few years. SoftBank, a big money backer of Grab, said last month that it will invest US$2 billion in Indonesia through the regional ride-hailing giant over the next five years. It also plans to explore investment opportunities in the country’s EV, battery and renewable energy sectors.

What’s Malaysia’s automotive plan for the near future? The revised National Automotive Policy (NAP), which was reported to be under review in June 2018, was expected to be announced in Q1 this year. In April, the government announced that the revised policy announcement would be done in the second quarter. We’re now in the third quarter.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Ministers forgot about the revised NAP coz everyone was so keen on power transition plan and cabinet reshuffle. If they aren’t around next year then why would they bothered. Everyone is for themselves now so enjoy while they can.

    Like or Dislike: Thumb up 12 Thumb down 0
    • Michael Wong on Aug 09, 2019 at 10:49 pm

      Whilst the whole world is moving forward with coding taught in schools, here we are still talking about calligraphy

      Like or Dislike: Thumb up 8 Thumb down 7
      • English Teacher on Aug 10, 2019 at 3:33 pm

        Many advanced countries uses calligraphy like Japan, Korea, China, Taiwan. So looking at that to be advanced we should have implemented calligraphy long ago.

        Like or Dislike: Thumb up 4 Thumb down 7
        • We failed because our education ministry didn’t get their priorities right. Our students should learn Java, not Jawi.

          Like or Dislike: Thumb up 2 Thumb down 0
  • P.Alyanna on Aug 09, 2019 at 3:30 pm

    Meanwhile here still hankering for national sports car. Can we exchange our PM for their President?

    Like or Dislike: Thumb up 12 Thumb down 2
  • lilytan on Aug 09, 2019 at 3:34 pm

    And our bright leaders talked about flying car and spare parts.

    Like or Dislike: Thumb up 7 Thumb down 0
  • malaysia going backwards, forever on Aug 09, 2019 at 5:32 pm

    Malaysia please, please wake up. Look at the leaders of our neighboring countries that r actually implementing stuff that will benefit both the rakyat and the country, not solely for political gain.

    Like or Dislike: Thumb up 12 Thumb down 1
  • Dilbert on Aug 09, 2019 at 5:54 pm

    Interesting, but can it fly? If not, how can it compare with our national flying EV car?

    Like or Dislike: Thumb up 11 Thumb down 0
  • Not Toyota Fan on Aug 09, 2019 at 6:59 pm

    Meanwhile back in Boleh-Land, Pakatan Hopeless is just …. hopeless.

    Like or Dislike: Thumb up 10 Thumb down 9
  • Protong EV on Aug 09, 2019 at 11:37 pm

    Even Indo is starting an EV industry, where is the Iriz EV that Proton said long ago? Proton is hopeless.

    Like or Dislike: Thumb up 10 Thumb down 3
    • EDITOR on Aug 10, 2019 at 3:47 pm

      Other people just started. Proton Iriz EV is already here.

      Like or Dislike: Thumb up 3 Thumb down 5
      • Yazid on Aug 10, 2019 at 6:54 pm

        What crap you talking about? Now already 2019 and it’s still not here bodoh

        https://paultan.org/2014/10/14/proton-ev-2017-under-rm100k/

        Like or Dislike: Thumb up 10 Thumb down 4
        • EDITOR on Aug 10, 2019 at 8:00 pm

          Takes crap to know crap. Here is your crap. Enjoy.
          https://paultan.org/2015/09/10/proton-iriz-ev-300-km-electric-car-on-display-at-igem/

          Like or Dislike: Thumb up 5 Thumb down 11
          • Pleiades on Aug 13, 2019 at 7:23 am

            Where or where is this mysterious car to be found? Oh, in 2015, so all we need is a time-machine! Maybe Malaysia will reconstitute DeLorean as National Flying Time-Travel car to facilitate this.

            Meanwhile, in 2019 there is no Proton EV… Great Scott! Someone has already changed the timeline!

            Like or Dislike: Thumb up 2 Thumb down 0
          • not many people know about IRIZ EV…it is locally made batteries..the only thing is whether it is/will be commercially viable or not.
            It is not MIA unfortunately..they only talk crap

            Like or Dislike: Thumb up 0 Thumb down 1
  • The return of the Cronies, part 2

    Like or Dislike: Thumb up 4 Thumb down 2
 

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