Regarding EV incentives, Periklindo says: Certainty is more important

The Indonesian Electric Vehicle Industry Association (Periklindo) believes that certainty regarding electric vehicle incentives is very important so that industry players and consumers can make decisions without being overshadowed by policy ambiguity.

Periklindo Deputy Chair for Development and Research Prabowo Kartoleksono said the industry in principle supports the provision of incentives. However, he said, policy certainty is far more important than continuously raising hopes without realisation.

“We always encourage (the provision of incentives). We always ask the government to provide these incentives. But the point is, incentives are good if they exist. If we are to be given them, give them; if not, then don’t. So we in the industry can respond accordingly,” Prabowo said in Jakarta on Tuesday.

According to him, if the government confirms whether incentives will be given or not this year, industry players can immediately adapt by developing marketing strategies and cost efficiencies.

“We as an industry will be able to take a stance immediately. If there are no incentives, we will figure out how to sell, how to produce so that costs can come down, and so on,” Prabowo said.

“People who were going to buy electric motorcycles will think twice, ‘if I buy now, and suddenly next month a subsidy is announced, then I will wait’,” he said.

Therefore, Periklindo hopes the government will immediately realise the electric vehicle incentives if they are to be provided, so as not to continue creating uncertainty that causes the public to postpone purchases.

The direction of the incentive policy has been announced, although the implementing regulations are still awaiting a final decision.

For electric cars, the government is preparing a Government-borne VAT (PPN DTP) scheme, rather than a direct cash subsidy. The incentive is planned to apply to 100,000 units in the initial phase.

Meanwhile, for two-wheelers, the government is preparing a subsidy of Rp5 million per unit, with an initial target of 100,000 new electric motorcycles. If the quota is exhausted, the government has indicated the possibility of increasing the quota.