One of the most significant obstacles in boosting electric vehicle adoption is our innate reluctance to alter our habits. Manufacturers all over the globe are working diligently on creating sophisticated, appealing electric alternatives for mainstream transportation. There is an array of accessible electric two-wheeled and four-wheeled vehicles currently available.
An effective strategy for advancing the adoption of electric vehicles is by reducing their costs. This is precisely what Indonesia intends to do beginning in 2023, providing incentives on sales of both cars and motorbikes powered with electricity.
According to Reuters, Coordinating Minister of Maritime and Investment Affairs Luhut Pandjaitan declared that subsidies on the sale of electric two-wheelers could reach 6.5 million Rupiah—roughly USD 413—for each purchase. Similarly incentivized programs may also be available for electric cars; however, more details are yet to come out.
In its overall agenda, Indonesia has taken a purposeful step towards achieving widespread utilization of electric vehicles. To be more specific, the country is targeting 1.2 million 2-wheelers and 35,000 cars powered by electricity to be in use by 2024.
Other countries have observed success with subsidy programs like this – India and France being just two examples. Commuters were enticed to switch from traditional vehicles to electric due to the decrease in the cost of ownership, as well as other incentives such as designated parking spots. Moreover, a surge of charging stations has made EVs more practical for everyday use.
Indonesia is dedicated to fostering the use of electric vehicles and investing in battery production, with Reuters revealing that nickel ore exports were banned as part of efforts to ensure supply for local processing. Additionally, Jakarta has spearheaded incentives such as tax discounts on EV sales and hybrid autos since 2019. The addition of subsidies towards lightweight EVs could prove beneficial in increasing their acceptance throughout the country.