According to the minister, the production target of battery-powered electric vehicles will hopefully be able to reduce CO2 emissions from cars by 2.7 million tons and from motorcycles by 1.1 million tons.
So far, three domestic companies have built facilities for manufacturing battery-powered electric vehicles, with a combined production capacity of 1,480 units per year, he informed.
To push the production of battery-powered electric vehicles, the government is providing fiscal and non-fiscal incentives to consumers as well as manufacturers, he said.
The incentives for consumers include zero percent luxury sale tax (PPnBM), a 10-percent cap on regional tax, zero percent down payment, low interest, electricity connection discount, special police number, among other things, the minister informed.
Meanwhile, the incentives for manufacturers cover tax holiday, mini tax holiday, tax allowance, import duty exemption, government-borne import duty, and super tax deduction for research, development, and demonstration (RD&D), he added.
"The automotive industry is one of the key sectors contributing significantly to the national economy. Right now, 21 four or more wheeled vehicle manufacturers are operating in Indonesia," he said.
Nearly 38 thousand workers are directly employed by the automotive industry and more than 1.5 million people are employed along the value chain of the industry, he pointed out.