President Jokowi wants Jakarta to accelerate adoption of electric vehicles with incentives

President Joko Widodo. AFP file photo / ROMEO GACAD
President Joko Widodo. AFP file photo / ROMEO GACAD

President Joko Widodo today announced that he signed a Presidential Regulation (Perpres) on Monday to put Indonesia on the path towards becoming a regional hub for electric vehicle (EV) manufacturing in the next few years (read more about the government’s EV investment plans in recent editions of our premium newsletter the Indonesia Intelligencer). Aside from manufacturing, the president also said that he wants Jakarta to pave the way for the adoption of battery powered cars. 

After announcing his Perpres in Jakarta today, Jokowi said he would like to see Jakarta introduce incentives for citizens to buy EVs, which he recognized are generally more expensive than regular cars.

“There will be no buyers if [electric vehicles] are too expensive. So we urge, especially Jakarta, which has a huge Regional Budget (APBD), to incentivize EVs. I think we can start,” President Jokowi told reporters, as quoted by Liputan 6.

Responding to Jokowi, Jakarta Governor Anies Baswedan said there’s already one EV incentive that is going to be introduced in the immediate future.

“The odd-even traffic rule exempts electric vehicles,” Anies said, referring to Jakarta’s vehicle rationing traffic regulation, which is set to expand to cover more of the capital’s busy roads next month.

While exempting EVs from the odd-even rule may be intuitive from an environmental standpoint, Jongkie D Sugiarto, chairman of The Association of Indonesian Automotive Manufacturers (Gaikindo), said it alone won’t be enough to accelerate EV adoption in Jakarta and Indonesia.

“There may be some effect on sales, but people would be more interested in EVs if they are priced reasonably. That’s why tax incentives would play a bigger role,” he told CNN Indonesia.

Other incentives that may entice buyers, Jongkie said, include subsidized parking and specialized parking spots for EVs.

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