Expert: Japanese Car Manufacturers Don't Want To Be Left Behind In The Electric Vehicle Subsidy Program.

Toyota Prius PHEV. (Doc. Toyota)

JAKARTA - Starting Monday, March 20, 2023, the government officially provides incentives for pure electric vehicles that have a local content of 40 percent.

Automotive expert from the Bandung Institute of Technology (ITB), Yannes Martinus Pasaribu, assessed that car manufacturers that have not produced electric vehicles in Indonesia should welcome incentive opportunities from the Indonesian government. Especially for Japanese car manufacturers who were first in Indonesia. This step will help strengthen their brand position in the Indonesian electric car market.

"To take advantage of the opportunity for electric car incentives from the Indonesian government, car manufacturers can take several strategic steps, especially for Japanese manufacturers who want to strengthen their position in the Indonesian electric car market," said Yannes Martinus Pasaribu, as reported by ANTARA, Monday, March 20.

According to Yannes, there are several strategic steps that automotive manufacturers can take to take advantage of the opportunity for electric car incentives from the Indonesian government. First, car manufacturers can increase local electric car production by reaching the Domestic Content Level (TKDN) 40 percent or more. By producing local electric cars, producers can take advantage of the incentives offered by the government and reduce the cost of producing electric cars.

Second, automotive manufacturers must present affordable electric vehicles for all Indonesian people. For example, preparing a valuable electric car below Rp. 400 million with TKDN above 40 percent so that with a subsidy of Rp. 80 million, the selling price can decrease to Rp. 320 million.

Third, car manufacturers must pay attention to the design of the vehicle being sold to suit consumer preferences in Indonesia. Cars that are suitable for the market tastes of Indonesian people that are still strong in MPV and SUVs and have many advanced technological features that can improve the driving experience that is getting more enjoyable.

Fourth, car manufacturers can collaborate with various parties to meet the infrastructure used by electric vehicles. This collaboration involves SPKLU service providers such as Pertamina and/or PLN to develop a wider battery charging infrastructure in Indonesia. This will increase the attractiveness of electric cars in Indonesia and make it easier for consumers to charge their electric car batteries.

Finally, education for consumers is an important step in in introducing environmentally friendly electric vehicles. By taking these strategic steps, car manufacturers, especially Japan, can take advantage of opportunities for electric car incentives from the Indonesian government and strengthen their position in the Indonesian electric car market.