Pandjaitan is reportedly in a final negotiation with the EV manufacturers Tesla Inc from the US and BYD from China.
"This is very important because honestly, we are finalizing negotiations with two global major corporations," he said during a press conference here, Monday.
"We expect that by issuing this new regulation, it will make our position much stronger as compared to what happened in recent times," he emphasized.
Starting from March 20, 2023, the government will provide Battery Electric Vehicle purchase aid.
This aid comprises Rp7 million (US$458) per unit for the purchase of 200 thousand new electric motorcycle units and Rp7 million per unit for the conversion of 50 thousand fossil-fueled conventional motorcycles to electric motorcycles.
The provision of the electric vehicle purchase incentive is expected to encourage investors to develop the EV industry in the country.
The minister believes that Tesla is still interested in building a factory in Southeast Asia.
According to Pandjaitan, despite the fact that the company built a new assembly factory in Mexico last February, this does not mean that the opportunity to build a factory in Southeast Asia has closed.
"Mexico is the backyard of America, so of course, they are going to build a factory there," he said.
The company owned by Elon Musk is said to be planning to build a factory with the capacity of producing one million cars per year in Southeast Asia, he noted.
However, it is not clear which countries Tesla will choose to build its factory in.
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Translator: Ade irma Junida, Fadhli Ruhman
Editor: Tia Mutiasari
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