JAKARTA (TheInsiderStories) – Indonesian government prepares the regulations related to electric motorbike, which can save around Rp798 trillion (US$55.03 billion) of imported fuel oil, said Indonesian president on Monday (01/14).
Beside produce electric motorbikes, Indonesia also has planned to produce electric car, as part of government move to boost the use of green energy utilization in the country and reduce gas emissions. The official draft of presidential decree on electric car now waiting approval from Widodo.
Since early of 2018, the government has announced to produce presidential decree that will pave the way for the development of the electric car in the country. Many developed countries are starting to leave the sale of hydrocarbon-fueled cars and switch to electricity.
The Government of Britain and France have even made bold steps to prohibit non-electric vehicle sales for highways starting 2040. The government also drafting a regulation that will slash the luxury goods sales tax and import duty of electric car, said Industry Minister Airlangga Hartarto on Feb. 26.
The government, he stated, to slash the luxury tax to 0 percent and import duty to 5.0 percent and its expect will be finalized within one month.
Indonesia is still far behind in the development of the electric cars. Industry players have blamed lack of infrastructure support, such as charging points or stations, which discouraged car makers to produce electric cars.
Some industry players also demand the government to provide incentives in order to lure car makers to produce electric cars. Such incentives are needed to encourage car makers to produce electric cars and catch up with other countries.
Globally, China has taken the lead in developing electric cars. Goldman Sachs has said that China is expected to supply 60 percent of the world’s electric vehicles by 2030, up from 45 percent in 2016.
Minister of Industry Airlangga Hartarto said the government targets that by 2025, around 20 percent of cars produced in Indonesia will be low carbon emission vehicles, including electric cars.
Many developed countries are starting to leave the sale of hydrocarbon-fueled cars and switch to electricity. The Government of Britain and France have even made bold steps to prohibit non-electric vehicle sales for highways starting 2040.
In 2017, the automotive industry contributed to the national economy of 10.16 percent and was able to absorb direct employment of around 350 thousand people and indirect labor of 1.2 million people.
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