Jakarta (ANTARA) - The number of electric vehicles (EVs) in Indonesia increased sharply in 2023, with the number of two-wheeled EVs surging by 262 percent, according to the Ministry of Industry.

The number of two-wheeled electric vehicles increased to 62,000 in 2023 from 17,000 in 2022, said Hendro Martono, Director of Maritime Industry, Transportation Equipment, and Defense Equipment at the ministry, on Friday.

"The government assistance program for purchasing two-wheeled EVs significantly contributed to the increase, among other factors,” he said during an event held to socialize the EV incentive program.

Under the program, the government is offering a discount of Rp7 million (around US$444) for a two-wheeled EV purchase.

Meanwhile, the number of four-wheeled EVs rose by 43 percent to 12,000 in 2023 from 8,000 in 2022.

Martono said that while the government has provided several incentives, the increase in EVs is not yet adequate.

For that reason, the government has devised a new incentive program under which it is offering zero percent import duty and sales tax on luxury goods.

This incentive applies to both fully assembled (completely built-up/CBU) and partially assembled (completely knocked down/CKD) imported electric cars with a local component level below 40 percent.

Additional incentives include a full corporate income tax exemption (tax holiday) for companies manufacturing EVs and a 50 percent tax cut for those investing in the EV industry.

The government also bears 10 percent of the value-added tax (VAT) on the purchase of electric cars.

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Translator: Shofi Ayudiana, Raka Adji
Editor: Anton Santoso
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