Indonesia To Offer $5,000 Subsidy On Electric Car Sales
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Indonesia’s government plans to offer a subsidy of more than $5,000 on every sale of an electric car, a minister said on Wednesday.
It will also offer incentives to encourage purchases of electric motorbikes as well as hybrid cars, Industry Minister Agus Gumiwang Kartasasmita said, as part of plans to reduce carbon emissions in Southeast Asia’s largest economy.
The incentives will offered to buyers of EVs produced by firms with factories in Indonesia, he said in a video statement.
A subsidy of around 80 million rupiah ($5,131) will be offered on every sale of an electric car, 40 million rupiah on hybrid cars and 8 million rupiah on fully electric motorbikes, the minister said.
The government will also cover 5 million rupiah of the cost to convert a combustion engine motorbike into an electric one, he added.
He did not provide a timeline for when the scheme will be implemented nor the total budget it will require.
Senior Minister Luhut Pandjaitan said previously that the program may start next year.
Indonesia has a target of at least 1.2 million electric bikes and 35,000 electric vehicles in use by 2024.
Questions & Answers
Q.Which types of vehicles will benefit from these new subsidies?
Which types of vehicles will benefit from these new subsidies?
Subsidies will be offered for electric cars, hybrid cars, and fully electric motorbikes. There will also be assistance for converting combustion engine motorbikes into electric ones, as part of Indonesia's carbon emission reduction plans.
Q.What is the specific value of the subsidy for a new electric car purchase?
What is the specific value of the subsidy for a new electric car purchase?
A subsidy of approximately 80 million rupiah, equivalent to over $5,000, will be provided for each new electric car sale. This incentive is aimed at encouraging a shift towards cleaner vehicle options.
Q.What is the main condition for buyers to qualify for these incentives?
What is the main condition for buyers to qualify for these incentives?
To qualify for the incentives, buyers must purchase electric vehicles produced by firms that have established factories within Indonesia. This condition aims to support local manufacturing and industry growth.
Q.Has the government announced when this subsidy scheme will begin?
Has the government announced when this subsidy scheme will begin?
The Industry Minister did not provide a timeline for the scheme's implementation. However, a Senior Minister previously suggested the program might commence next year, though no firm date was given.
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