Indonesia Finalizes Lucrative Incentive for EV Purchase

Industry Minister Agus Gumiwang Kartasasmita leaked the government's grant for electric car incentives. The value varies from Rp 25 million to Rp 80 million. The Hyundai Ioniq 5 and Wuling Air EV are the electric cars that receive this incentive.

The subsidy assistance for the Hyundai Ioniq 5 is Rp 70 million–Rp 80 million per unit, while the Wuling Air EV is Rp 25 million–Rp 35 million.

According to Agus, incentives were only provided to two electric vehicles, the Ioniq 5 and Wuling, that had 40 percent of domestic content (TKDN).

"Don't state 'for sure,' but the Ioniq 5 car will receive about Rp 70 million to Rp 80 million in government funding. The amount of government assistance for Wuling will be between Rp 25 million and Rp 35 million. We will calculate this straight away and are still working on it" he said after the PIDI 4.0 Grand Launching in Jakarta on Tuesday.

Agus said that assistance for electric vehicles was not an incentive or subsidy. Additionally, he stressed that to qualify for the subsidy assistance, electric vehicles must have a TKDN of at least 40 percent. He believes that using local content is essential in providing government assistance.

"So, this is not an incentive, not a subsidy. This is assistance from the government. What makes local material so crucial? Because we want Indonesia to, at least, maintain its jobs," he said.