Jakarta (ANTARA) - The Industry Ministry has continued to support electric vehicle (EV) ecosystem development with the target of putting 9 million two- and three-wheeled EVs and 600 thousand electric cars and buses on Indonesian roads by 2030.

The target is expected to contribute to reducing fuel oil (BBM) consumption by 21.65 million barrels, or the equivalent of reducing CO2 emissions by 7.9 million tons in total.

"The electric vehicle ecosystem in Indonesia is rapidly growing, with a capacity exceeding the market development. This has also been driven by various strategic policies from the government, including providing business certainty, a road map, and optimizing the domestic component level (TKDN)," the ministry's acting secretary general, Putu Juli Ardika, said in a statement issued on Thursday.

Currently, there are five companies producing electric buses in Indonesia with a total production capacity of 2,480 units per year and a total investment of 0.36 trillion, he informed.

In addition, there are three companies producing electric cars with a total production capacity of 34 thousand units per year and a total investment of Rp2.403 trillion, Ardika said.

Furthermore, 48 companies are producing electric motorbikes with a production capacity of 1.427 million units per year and a total investment of Rp0.818 trillion, he added.

To support efforts to accelerate the development of the EV ecosystem, Indonesia has two battery factories, namely PT HLI Green Power and PT International Chemical Industry (ABC), he noted.

PT HLI Green Power is a collaboration between Hyundai Group and LG to produce battery cells, with a first-phase capacity of 10 GWh and an investment value of US$1.1 billion.

"The electric car battery factory is planned to be completed in 2023 and will start to supply the needs of electric car factories by 2024," Ardika said.

According to him, the battery cell industry will supply the needs of around 150 thousand and 170 thousand electric vehicles.

Meanwhile, PT International Chemical Industry has a production capacity of 100 MWh per year (equivalent to 9 million cells), with a total production capacity target of 256 MWh per year (equivalent to 25 million cells), he noted.

"For electric motorbikes, we have three Indonesian National Standards (SNI) to regulate the standardization provisions for battery packs for KBLBB (battery-based electric motorized vehicles), which are divided into two categories, namely SNI for batteries in general (onboard and swappable) and SNI for swap batteries," he said.

In accordance with the mandate of Presidential Decree 55 of 2019, the government is also providing incentives to consumers and the manufacturing industry.

Incentives for consumers include zero percent sales luxury tax (PPnBM), government-borne value-added tax (PPN DTP), and transfer of motor vehicle ownership (BBNKB); low-interest rates and zero percent down payment; discounts on adding electricity power; special number plates; and incentives for purchasing two-wheeled electric vehicles amounting to Rp7 million.

Meanwhile, incentives for the manufacturing industry include tax holidays, mini tax holidays, tax allowances, import duty facilities, government-borne import duties, and super tax deductions.

"We hope the incentives can trigger the production of various types of KBLBB in Indonesia," Ardika said.

Related news: ASEAN, China, Japan, S Korea agree to develop EV ecosystem: Jokowi
Related news: Indonesia finalizing mechanism for ASEAN EV cooperation
Related news: President Jokowi, Vietnamese PM discuss cooperation on EV development

Translator: Ade Irma J, Resinta Sulistiyandari
Editor: Azis Kurmala
Copyright © ANTARA 2023