Tempo are reporting on news that President Jokowi has announced a IDR 5-trillion electric vehicle purchasing incentive as the government’s attempt to accelerate the country towards an era of electrification.
“The policy was taken under immense calculation and studies. We have also studied [the policy] from other countries,” said the President on Thursday, December 22.
Apart from motivating the development of the electric vehicle industry in Indonesia, the President believes there will be a rather significant multiplier effect in the form of state fiscal revenues starting from increasing taxes, increasing Non-Tax State Revenues (PNBP), and expanding employment opportunities, report Tempo.
Apart from personally-owned electric vehicles, the government also plans to consider incentives for electric buses and other public transportation. The requirement that incentives will only target domestically-assembled vehicles will also apply.