Indonesia’s president signs new EV, the decree for the strengthening of the industry

JAKARTA (Reuters) – the Indonesian President to Either Widodo said he will on Thursday signed a decree that establishes the support of the government for the construction of an electric vehicle (EV) industry in South-east Asia’s largest economy, the Cabinet Secretariat said in a statement.

FILE PHOTO of Indonesian president-Either Widodo delivers a speech at the Opening of the ASEAN Secretariat Building in Jakarta, Indonesia, August 8, 2019. REUTERS/Willy Kurniawan

Widodo did not elaborate, but a draft decree was reviewed by Reuters before the signing ceremony, the consisted of a series of incentives to encourage the production and purchase of EVs.

Widodo, said in a statement that it is the key to the EV industry in the design and construction of the batteries which they run on, and the raw materials to a battery of cobalt, manganese, and others, that we have in this country.”

Resource-rich Indonesia has been seeking to carve out a more downstream industries based on the supply of nickel laterite ore, which is used in lithium ion batteries.

“The strategy of the company will be able to be developed in this country, so that we will be able to get the others to build a cheap electric car industry that is competitive, because the resources are here,” he said on the sidelines of an event in the principal office of the Association of Southeast Asian Nations, according to the statement.

Widodo warned that the build-up of such an industry would take longer than a “year or two”, because there is a market.

The proposal for a regulation is viewed by Reuters shows automakers, reductions of import duties on machinery and materials, and to lower the luxury tax to the purchaser, among other things.

Widodo on Thursday, has also suggested that the city’s public services throughout the country that can provide more incentives, such as free parking or a free of charge administrative expenses to further support the implementation of the Service by the private sector, consumers, and the public transport companies.

Indonesia wants to be an EV hub of Asia with a goal to start EV production in 2022, and the share of the exposure output to reach 20% of the total production of automobiles in the year 2025.

The indonesian authorities are said to be Toyota Motor Corp., which has the largest market share in the domestic market, ” Hyundai Motor will invest $2 billion to $880 million in the country, and the development of EVs in the years to come.

Reporting by Gayatri Suroyo; Editing by Ed Davies and Christian Schmollinger

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