By Greg Gao

(JW Insights) Aug 1 -- China’s auto manufacturers BYD and Wuling Motors, and other electric vehicle(EV) makers intend to set up production facilities in Indonesia, reported Chinese tech media outlet IT Home recently, citing Indonesia’s Investment Minister, Bahlil Lahadalia.

The Indonesian government discussed comprehensive measures to accelerate the EV ecosystem as well as to increase investment in the country. “The government formulated comprehensive measures, both regulations and incentives, including value-added tax (VAT) incentives, to increase EV adoption,” Lahadalia remarked.

The Indonesia government will review the policy to make it easy for the public to get an EV, he affirmed.

Statistics indicate that Indonesia’s EV industry is on the rise, with sales surpassing 20,000 units in 2022, more than doubling from the previous year. It is projected that the number will exceed 50,000 units in 2023. Indonesia’s Ministry of Industry has previously outlined its development goal of producing one million EVs nationwide by 2035.

Indonesia possesses a well-established automotive industry base and abundant mineral resources, including a significant portion of the world’s nickel reserves, a critical material for EV batteries. As one of the largest nickel producers globally, the country is leveraging its resource advantage expanding to the automotive manufacturing sector. 

Indonesian President Joko Widodo has emphasized the need to seize the opportunity of the global EV wave and establish a complete EV industry chain ecosystem, according to IT Home.