Kartasasmita emphasized that the incentive option is gaining relevance as Indonesia seeks to promote eco-friendly transportation while lowering carbon emissions, cutting fuel consumption, and saving energy subsidies amid rising global crude prices.
He said the government is positioning EV as a vital part of economic strategies, especially in efforts to bolster the resilience of the manufacturing industry and protect the workforce.
“Incentives or stimuli are indeed aimed at strengthening our industries, which is crucial to protect our workers,” the minister told reporters after the meeting at the Finance Ministry office.
He observed that ongoing international conflicts, including the war involving Iran and the United States, have, to some extent, boosted the appeal of EVs, as geopolitical tensions and energy supply disruptions underscore the urgency of reducing fossil-fuel consumption.
Citing data from the Association of Indonesian Automotive Industries (Gaikindo), Kartasasmita underlined a shift in market orientation toward electric-powered vehicles to that effect.
However, he said the Ministry of Industry wields no authority to unilaterally determine the form or scheme of the planned EV incentives.
“Questions regarding when the incentives will roll out, in what form, and under what scheme, can be addressed directly to the finance minister,” he told the press.
In addition to EV governance, the two ministers used the meeting to exchange perspectives on ways to drive up Indonesia’s manufactured product exports.
Kartasasmita said Statistics Indonesia (BPS) data showed that manufacturing contributed 75 to 80 percent of national exports. Even so, only about 20 percent of domestic products are bound for overseas markets, while most output is absorbed at home.
On that note, he said the government seeks to boost export proportions without neglecting the domestic market.
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Translator: Shofi Ayudiana, Tegar Nurfitra
Editor: Azis Kurmala
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