On Thursday, Indonesian President Joko Widodo said he signed a decree defining government support to build an electric vehicle industry in Southeast Asia’s largest economy, the Cabinet Secretariat said in a statement.
Widodo said in the statement that the key to the EV industry is in building the batteries they work on and “the raw materials for making a battery: cobalt, manganese and others, we have in this country.”
“Business strategy can be devised in this country so that we can advance from others in building a cheap electric car industry, which is competitive because the raw materials are here,” he said on the sidelines of an event at the headquarters of Mr. Association of Southeast Asian Nations, according to the statement.
Resource-rich Indonesia is seeking to build an upstream industry based on its supplies of nickel ore laterite, which is used in lithium batteries.
Widodo warned that building such an industry would take more than “a year or two” because it also has to create a new market.
The first Reuters draft regulation gives motorists lowering import tariffs on machinery and materials and lowering luxury taxes for buyers, among others.
Widodo on Thursday also suggested that city administrations across the country could provide more incentives, such as free parking or free administrative fees, to further support the adoption of EVs by private consumers and public transport firms.
Indonesia aims to become an EV hub for Asia and beyond with a goal to start EV production in 2022 and for the share of EV production to reach 20% of total car production by 2025.
Indonesian authorities said Toyota Motor Corp, which has the largest market share in the domestic car market, and Hyundai Motor will invest $ 2 billion and $ 880 million in the country respectively to develop EVs over the years. next./Investing.com