BYD Welcomes Positively Government EV Incentives

JAKARTA – Chinese automaker BYD has voiced its support for the Indonesian government, which is currently drafting regulations on EV incentives that utilise nickel batteries. Head of Public & Government Relations at PT BYD Motor Indonesia, Luther Panjaitan, stated that the government’s rules have a positive objective and will serve as a catalyst for EV adoption in Indonesia. “I believe the government’s incentives can as soon as possible support the energy transition and reduce fuel subsidies. Especially with the current uncertainties and increasingly complex geopolitical situations, it becomes even more critical to avoid reliance on fossil fuels,” said Luther Panjaitan in Jakarta on Tuesday (12/5/2026). BYD has a long-term strategy to follow the market in each country. Therefore, BYD is always committed to supporting government-issued regulations to foster the transition to EV use in Indonesia. The strategy mentioned by Luther encompasses various aspects related to the sale of electrified vehicles in the Indonesian automotive market. “We have established everything, considering various aspects including production, the ecosystem to be built, the style in determining the sales network. Then considerations for the package for its operation, such as after-sales, warranty commitments, and batteries,” explained Luther. Globally, BYD has also been quite successful in helping the transition from internal combustion engine (ICE) vehicles to full electrification. According to him, they will also study various successful strategies implemented in other countries. “That plan may also be a reflection that the current fiscal and even non-fiscal regulations are effective in supporting the transition,” he said. Previously, the government through the Ministry of Finance planned to provide greater incentives for pure electrified vehicles (EVs) that use nickel as their battery raw material. This is implemented to strengthen domestic downstreaming. The policy emphasises the use of local nickel (especially third-generation or high-nickel type) as battery raw material. “Whatever the battery technology, whether nickel or lithium, both support the government’s good intentions. The rest we leave to the government to decide,” he said.