Indonesia Considers Adding More Incentives for Hybrid Cars

The Indonesian government is currently formulating an emission-based incentive for hybrid cars. The lower the emissions, the greater the incentives will be.

Industry Ministry's director general of metal, machinery, transportation equipment, and electronics Industry Taufiek Bawazier said that hybrid cars, even though the engine can still use fossil fuels,  are able to reduce carbon emissions and therefore deserve to get incentives similar to other electric cars.

The government is trying to implement a reward-based approach using a carbon unit analysis. For example, an automaker will get the incentive if it makes a unit that can initially reduce 95 grams of carbon dioxide emissions per kilometer to 75 grams per kilometer in the following year.

"This [kind of automaker] will receive a reward to encourage them to continue reducing emissions," he said on Tuesday.