Photo: KompasTV
Indonesia is set to begin offering incentives on qualifying electric vehicle (EV) and motorcycle purchases on March 20, according to a statement from senior cabinet minister Luhut Pandjaitan on Monday (via Reuters).
The incentive, expected to help boost sales of EVs and attract investments from companies like Tesla, will apply to the sale of 200,000 electric motorcycles and 35,900 electric cars, according to Industry Minister Agus Gumiwang Kartasasmita. Additionally, the incentive will cover the conversion of 50,000 combustion-engine motorcycles.
It’s not clear what the specific budget for the incentive program is, but the ministers did say that 7 million rupiah ($457.82 USD) will be paid out to retailers and manufacturers for each new motorcycle converted into an electric bike.
Luhut also said he plans to talk with Tesla in the coming days.
The news comes as Indonesian President Joko Widodo has been attempting to woo Tesla to build an EV factory for months. Some recent reports even say Tesla and Indonesia are finalizing plans for an EV Gigafactory.
In addition to Tesla, Indonesia is reportedly nearing an EV production deal with Chinese automaker BYD.
“We are finalising negotiations with two big global car producers,” Luhut said, not specifying which companies the country was in talks with. “We hope this new policy will make our position much stronger than before. If we don’t give (incentives), they will not come to us.”
Tesla Needs to Make Cars in Indonesia, Not Just Batteries: President https://t.co/0YwwtLNvWK
— TeslaNorth.com (@RealTeslaNorth) August 19, 2022
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