Jakarta (ANTARA) - The Indonesian government discussed comprehensive measures to accelerate the electric vehicles (EV) ecosystem as well as to increase investment in the country, Investment Minister Bahlil Lahadalia stated.

President Joko Widodo (Jokowi) held a meeting with ministers at the Presidential Palace, Jakarta, on Monday.

"(They have) formulated comprehensive measures, both regulations and incentives, including value-added tax (VAT) incentives, (to increase EV adoption)," Lahadalia remarked.

He noted that the government has also taken steps to push investment in electric cars.

According to Lahadalia, investment from Hyundai Motor Group to build its first manufacturing plant in Indonesia is currently underway.

Other automobile manufacturers, such as BYD and Wuling from China, will follow to invest in the local EV plant, he stated.

"We also discussed how we can be competitive with other countries, such as Thailand and Malaysia," he remarked.

During the meeting with the president, Lahadalia said that they had also discussed the implementation of electric motorbikes in the country, as the number of electric motorcycle purchases in Indonesia is still far from the target.

The government will review the policy to make it easy for the public to get an electric motorbike, he affirmed.

Indonesia is committed to developing the downstream EV battery industry and building an EV ecosystem in the country.

To expedite growth of the EV ecosystem, the government has issued an incentive policy by offering a purchase discount of Rp7 million (around $469) per unit for 200 thousand new electric motorbikes and 35,900 electric cars. The incentive began to be offered on March 20, 2023.

To date, a remaining incentive quota of 198,718 units of electric motorbikes had yet to be distributed, he remarked.

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Translator: Shofi Ayudiana
Editor: Azis Kurmala
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