DIGIVESTASI - The government continues to actively provide various incentives for every purchase of electric vehicles made by its citizens. Meanwhile, the policy is carried out to accelerate the sale of battery-based electric vehicles (KBLBB).

Abra El Talatov, director of INDEF's Center for Food, Energy and Sustainable Development, said the government has prepared incentives to attract investors to Indonesia. Given that the government is also currently promoting a nickel downstream project as a raw material for electric vehicle batteries. 

"The goal is that this large-scale downstream project can attract investors from the automotive industry, especially electric vehicles." 

Looking at various countries in the world, Abra said each country needs at least 5-10% of the electric vehicle market share to attract investors. Meanwhile, in Indonesia alone, the market share of electric vehicles is currently less than 1%. 

"The government is after the chicken and the egg. Will it attract investors first or will it accelerate the uptake of electric vehicles? However, even if the government reviews the conditions of subsidy recipients, the visibility is still very low," he said. 

Mr. Abra pointed out that sales of electric motorcycles last year were only 11,500 units or 5.7% of the target of 200,000 units. Therefore, it is reasonable for the government to subsidize the purchase of electric vehicles.

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