Electric Cars are Indonesian Automotive Industry’s Future, President Jokowi Says

By : M. Amru | Saturday, February 17 2024 - 12:13 IWST

Electric Cars are Indonesian Automotive Industry’s Future, President Jokowi Says
Electric Cars are Indonesian Automotive Industry’s Future, President Jokowi Says

INDUSTRY.co.id - President Joko “Jokowi” Widodo opened the 2024 Indonesia International Motor Show (IIMS) automotive exhibition, at JI-Expo Kemayoran, Jakarta, Thursday (02/15). In his statement to journalists after the opening, President Jokowi emphasized that electric-based vehicles are the future of Indonesian automotive industry.

“I clearly see there are many electric cars on display, and I think the future of Indonesian automotive lies indeed in electric cars because we have nickel and other raw materials,” said the President.

With regard to support for the development of the electric vehicle ecosystem, the President said that the Government is committed to encouraging a reduction in value added tax (VAT) for electric vehicle products. Previously, in 2023 the Government had also provided incentives to encourage electric vehicle production.

“While there are not yet [any additional incentives], we are already pushing for a reduction in VAT. I think this will encourage sales and later this will eventually push electric vehicle (EV) factories in Indonesia to produce more. I think we are moving to such a direction to be able to compete with other countries if we have succeeded in providing all the local content and the batteries. We will see that later we will be able to compete with other countries too,” he said.

Closing his statement, the Head of State also stated that the Government also keeps encouraging the production of electric-based public transportation modes.

“We push all EV producers with the aim that all of them will manufacture their products in Indonesia. EV producers of all brands will manufacture their products in Indonesia because we have the advantages as the main producer of EV batteries,” he said.

Also joining the President in this event were, among others, Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of Industry Agus Gumiwang Kartasasmita, Minister of Trade Zulkifli Hasan, Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, and Acting Governor of Jakarta Special Capital Region Heru Budi Hartono.

 

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