Jakarta (ANTARA News) - State-owned Enterprise (SOE) Minister Dahlan Iskan has stated that the government will use fuel cells in the electric cars it is planning to produce.

"The electric car will be powered not by electricity but by fuel cells," he said at his office on Friday.

Therefore, Dahlan instructed the Agency for Assessment and Application of Technology (BPPT) to produce fuel cell prototypes.

The minister said the fuel cell prototype was expected to be ready within six months, adding that he had met with the fuel cell manufacturer, BPPT, on Friday.

"Fuel cell is an electrochemical instrument which looks like battery but it is different. Unlike a regular battery, it can produce electricity from an external supply of hydrogen and oxygen," Dahlan explained.

The minister test-drove a prototype electric car made by Dasep Ahmadi on July 16, 2012. However, the car experienced engine trouble twice during the test drive.

Dasep Ahmadi has produced three electric cars, which come in three different colours: green, red and white. The car is priced between Rp200 million and Rp300 million.

Chief Economic Minister Hatta Rajasa stated last month that the government would soon set up an electric automotive technology development centre.

"We have decided to set up an electric automotive and technology development centre," he said after holding a coordination meeting.

"The meeting will discuss government regulations relating to incentives for producers, particularly state-owned firms and their subsidiaries," Hatta added.

"The incentives will be in the form of import duty exemption and a waiver on value-added taxes for main components of automobiles, such as car batteries," he said.

Hatta pointed out that the government would hold an exhibition on August 30, 2012, which would coincide with the National Technology Awakening Day in Bandung, West Java.

"We will exhibit products that have successfully been produced, such as cargo transportation vehicles, buses and city cars, among other things," he said.

Hatta noted that the Indonesian Institute of Sciences (LIPI) produced various types of electric buses and city cars, which were almost ready to be manufactured on a commercial scale.

(A014/INE/B003)

Editor: Suryanto
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