Indonesia to offer US$5,000 subsidy on electric car sales
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INDONESIA’S government plans to offer a subsidy of more than US$5,000 on every sale of an electric car, a minister said on Wednesday (Dec 14).
It will also offer incentives to encourage purchases of electric motorbikes as well as hybrid cars, Industry Minister Agus Gumiwang Kartasasmita said, as part of plans to reduce carbon emissions in South-east Asia’s largest economy.
The incentives will offered to buyers of electric vehicles (EVs) produced by firms with factories in Indonesia, he said in a video statement.
A subsidy of around 80 million rupiah (S$6,918) will be offered on every sale of an electric car, 40 million rupiah on hybrid cars and 8 million rupiah on fully electric motorbikes, the minister said.
The government will also cover 5 million rupiah of the cost to convert a combustion engine motorbike into an electric one, he added.
He did not provide a timeline for when the scheme will be implemented nor the total budget it will require.
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Senior Minister Luhut Pandjaitan said previously that the program may start next year.
Indonesia has a target of at least 1.2 million electric bikes and 35,000 EVs in use by 2024. REUTERS
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