Observer: National vehicle production efforts require consistent policy

Automotive observer Bebin Djuana has said that efforts to produce a national vehicle require consistent long-term policy support.

“What needs to be prepared is policy consistency and alignment of vision and mission across all levels of government,” he said when contacted by ANTARA from Jakarta on Saturday.

He said that long-term policy consistency would provide business certainty for automotive industry players.

“Because the brands we invite to cooperate need certainty that regulations will not change for the next 10 to 20 years,” he said.

Bebin also highlighted the need to implement incentive or subsidy policies to support national vehicle production.

“So that the investment disbursed can be covered or guaranteed, considering that within 2-3 years there will be a minor change or a new model, meaning additional investment will be needed,” he said.

According to him, the Indonesian government can learn from the experience of neighbouring Malaysia in producing national vehicles. Malaysia already has its own national car brands, Proton and Perodua.

“We will accelerate the electrification of people’s mobility. We must significantly reduce fuel subsidies. To that end, the government I previously led has launched a national electric motorcycle ecosystem,” he said.

He also announced the government’s plan to provide incentives for domestic companies capable of producing one million electric motorcycles to accelerate vehicle electrification while boosting the domestic automotive industry.

According to him, the government’s incentive policy is aimed at lowering vehicle costs for the public, reducing imported fuel consumption, and growing the national electric motorcycle industry.

“This incentive is an investment to make the Indonesian people the first market for the works of Indonesia’s own children,” he said.