MG Awaits Technical Clarity on Electric Vehicle Incentive Scheme

Bandung (ANTARA) - MG Motor Indonesia has positively welcomed the government’s plan to prepare incentives for 100,000 electric car units this year, although it is still awaiting clarity on the technical implementation.

The British marque, now acquired by China, assesses this policy as a strong signal of the government’s support for the development of the electric vehicle industry domestically, particularly amid conditions in the economy deemed still dynamic.

“The details are just 100,000, 200,000. But how the implementation will be, and at which points the subsidies will apply, that’s what we need, so it can be studied more deeply. However, with this news (on incentives), we’re pleased, as players in the car industry, we’re certainly very pleased,” said MG Motor Indonesia Product Manager Eko Fachruroji to the media during a test drive in Bandung on Wednesday.

Currently, according to Fachru, industry players, including MG, are still awaiting further clarity regarding the mechanism and criteria for providing incentives that are being reviewed by the government.

Nevertheless, the manufacturer assesses that a full incentive scheme like the one applied previously remains a more effective option for encouraging wider adoption of electric vehicles.

“If according to us, the appropriate one is definitely last year’s (incentive scheme). Meaning last year, it was 100 percent incentivised,” said Fachru.

Regarding the incentive quota for 100,000 electric car units, MG assesses that the number still has the potential to be insufficient to drive optimal industry growth.

“If asked whether it’s enough or not, we would certainly say it’s lacking, to further encourage this industry, so it can develop more,” he said.

However, the company emphasised that it will still follow the applicable government policy in the future.

“But of course, the government has its calculations, looking at how big the impact will be on the market. And also the government’s fiscal strength, but certainly we will follow,” he added.

Finance Minister Purbaya Yudhi Sadewa in Jakarta on Tuesday (5/4) stated that the government will prepare electric vehicle (EV) incentives, with details of 100,000 car units and 100,000 electric motorcycles this year.