Chairperson of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid made the remarks in a statement released here on Thursday.
"This incentive program is a testament to the commitment of the Indonesian government, which will soon fully adopt the use of EVs as well to become an EV industry giant," he said.
Through Presidential Regulation Number 55 of 2019 on battery electric vehicle (BEV) for land transportation program, the government is targeting the adoption of EVs to reach two million units by 2025.
Compared to other countries in the ASEAN region, such as Thailand and Malaysia, Indonesia is still lagging in terms of EV adoption, Rasjid noted.
Research conducted by McKinsey in 2021 showed that EV adoption reached 0.7 percent in Thailand and 0.3 percent in Malaysia, while it only stood at 0.1 percent in Indonesia.
The delay in the adoption of EVs in Indonesia has been attributed to the relatively high cost involved in switching from non-electric vehicles to electric vehicles.
In neighboring countries like Thailand and Malaysia, various incentives are being provided to support EV adoption.
For that reason, the Indonesian government is providing several incentives that can help the community and the EV ecosystem to develop faster.
"This step becomes Indonesia's game-changer for the EV industry," he said.
Rasjid, who is the chair of the ASEAN Business Advisory Council (ASEAN-BAC), further noted that the acceleration of EV use in Indonesia is in line with one of ASEAN-BAC's priority issues related to sustainable development.
To realize industrial decarbonization, the ASEAN Net Zero Hub and Carbon Center of Excellence have been set up to promote collaboration and the sharing of knowledge and best practices on industrial decarbonization and enable carbon mechanisms and progress across ASEAN region.
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Translator: Ade Irma, Raka Adji
Editor: Rahmad Nasution
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