Indonesia aims to reach 600,000-unit annual production of electrified vehicles by 2030 – report

Indonesia aims to reach an annual production volume of electrified cars by 2030, said the country’s minister of industry Agus Gumiwang Kartasasmita according to CNN Indonesia. Meanwhile, the country has also aimed for an annual production figure of 2.445 million electric bikes in that time, the report added.

The production targets for electrified cars and electric bikes aims to reduce CO2 emissions in the country by 2.7 million tonnes from four-wheeled vehicles, and 1.1 million tonnes from two-wheelers, which Indonesia hopes to encourage through various fiscal and non-fiscal incentives, CNN Indonesia reported.

For consumers, the incentives include a maximum of 10% in regional taxes, 0% downpayment and low interest rates, tax holidays, tax allowances, import duty exemptions and others, according to the report. So far, there have been three domestic industrial companies that have built production facilities for four-wheeled vehicles, with a production capacity of 1,480 vehicles a year.

There are currently 21 companies producing four-wheeled vehicles in Indonesia, reported CNN Indonesia. These companies have invested up to 71.35 trillion rupiah (RM20.31 billion) for a total production capacity of 2.35 million vehicles a year, and this sector is said to account for the direct hiring of 38,000 staff and more than 1.5 million workers in the broader industrial value chain, it said.

In terms of overall four-wheeled vehicle production in Indonesia, 152,000 units were produced in the period of January to February 2021, with 102,000 four-wheeled vehicles sold in that period, said Agus quoting figures from the ministry of industry of Indonesia.

Further along the EV landscape in Indonesia, the country is ramping up its role in EV battery production with the formation of the Indonesia Battery Corporation (IBC), a joint venture between four state-owned enterprises (SOEs) which are Pertamina, Perusahaan Listrik Negara (PLN), Mind ID and PT Aneka Tambang (Antam); each with a 25% share of the joint venture.

In neighbouring Thailand, The Bangkok Post reported that the target date for all electrified vehicles sold in Thailand to be produced locally was brought forward by five years to 2035. The development emerged from a request by the private sector in Thailand to expedite production of electrified vehicles in the country, that was approved in March by the National New Generation Vehicle Committee.

Thailand’s plan is to produce 1.051 million electrified vehicles by 2025, and this is to comprise of 400,000 cars and pick-up trucks, 620,000 motorcycles and 31,000 buses and trucks. By 2035, this is aimed to grow to 18.41 million electrified vehicles, which will be comprised of 8.62 million cars and pick-up trucks, 9.33 million motorcycles and 458,000 buses and trucks.

The committee approved the establishment of four sub-committees, which will coordinate research into matters such as EV infrastructure, privileges and taxes, along with the development of an ecosystem suitable for EV production sites in Thailand.

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