Proven Incentive Program Boosts Electric Car Sales in Indonesia

KatadataOTO – Although sales of pure EV (Electric Vehicle) are currently being surpassed by HEV (Hybrid Electric Vehicle), its growth is believed to still be able to develop until the end of 2025.

This is due to the existence of electric car incentives from the government for manufacturers if they have met the requirements. 

In 2023, data compiled by AEML (Electric Car Ecosystem Association) showed that out of the 16 EV models offered to consumers, only 11 recorded sales figures.

At that time, the market share for electric cars was 1.7 percent. Then, the delay in implementing incentives also caused a number of consumers to postpone their purchases. This resulted in the EV market share dropping to 1.2 percent.

Photo : KatadataOTO

“When the (incentive regulation) was released, the (EV market share) went up. From 1.7 percent to 1.2 percent, (then it rose) to 2.2 percent,” said Rachmat Kaimuddin, Deputy for Coordination of Infrastructure and Regional Development at the Coordinating Ministry for Infrastructure and Regional Development of the Republic of Indonesia and also a member of the Board of Trustees of AEML (Electric Mobility Ecosystem Association) in Jakarta some time ago.

In fact, it's reported that thanks to that regulation, several manufacturers are more aggressively bringing in new models. The Wuling BinguoEV arrived towards the end of 2023, although many had suspected the product would only be introduced in 2024 or 2025.

Not only that, new players have also started to arrive. Especially after the new regulation came into effect, namely import incentives, where manufacturers can still receive subsidies even though the vehicles are still CBU (Completely Built Up).

However, the regulation is conditional. Because manufacturers will later have to produce according to the number they have imported.