Indonesia eyes mass production of home-grown EVs by 2028
Indonesia hopes to start the mass production of home-grown electric cars no later than 2028, President Prabowo Subianto said on Thursday, in an effort to increase the adoption of electric vehicles in Southeast Asia’s largest economy. The president said the government is currently building a huge factory complex to manufacture the electric cars in the Subang region of West Java province. Prabowo…
Indonesia is aiming to start mass production of domestically-made electric vehicles by 2028, President Prabowo Subianto announced on Thursday. The goal is to boost adoption of EVs in Southeast Asia's largest economy. The government is constructing a massive factory complex in West Java's Subang region to manufacture the vehicles.
This initial 60-hectare development intends to produce up to 50,000 vehicles annually, with plans to expand into a 539-hectare facility with a capacity for up to 300,000 vehicles per year, as per a June government statement.
The president made this announcement during the launch of a national electric motorcycle program. This program aims to create an integrated ecosystem encompassing manufacturing, batteries, charging infrastructure, and after-sales services. To encourage electric scooter sales, state-owned lenders will provide affordable vehicle loans with extended repayment periods, according to Rosan Roeslani, CEO of Indonesian sovereign wealth fund Danantara.
Prabowo also hinted at a trade-in scheme, allowing people to replace their conventional motorcycles with electric scooters. Jakarta has proposed offering a 5 million rupiah ($279.80) subsidy for each electric motorcycle purchased, contingent on a total quota of 500,000 units. Additionally, there is consideration for a value-added tax exemption of up to 100% for specific electric car purchases.
Indonesia has set an ambitious target to have 13 million electric motorcycles and 2 million electric cars on its roads by 2030.
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