JAKARTA - The Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) said that the limitations of the electronic vehicle (EV) model or electric vehicle are one of the reasons electric cars are still empty of enthusiasts and sales are still low in Indonesia.
"There are not many choices, for example, only Wuling and Hyundai. There are many colors but there are not many models, so this is what we are trying to handle," said Deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs, Rachmat Kaimuddin, as reported by ANTARA, Wednesday, May 31.
Rachmat said the most fundamental problem in building the EV industry is the issue of demand.
Currently, Indonesia does not have an EV at an affordable price. EVs are much more expensive than oil-fueled vehicles with equivalent quality and even the difference can reach 30-40 percent.
In addition to facing demand problems, supply challenges are also an issue that must be faced by the government so that EVs can be adopted. Domestic EV capacity is still low with a production capacity of 29,000 cars, 2,480 buses and 1.42 million motorcycles per year. Not to mention that investors need market support in the form of a legal framework and incentives to encourage investment.
Nevertheless, Rachmat is optimistic that sales of electric vehicles can be more due to the fact that vehicle ownership in Indonesia is much lower than neighboring countries. In fact, the automotive industry has a significant role in the Indonesian economy as a manufacturing center.
"Car owners in Indonesia are still low, maybe 1.5 from Malaysia. Malaysia with a population of around 32 million sales of around 720 thousand. So we still have a market going forward with a wider economy," he said.
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The government's optimism regarding the shift to electric vehicles is also motivated by the savings in EV operating costs which are lower than conventional vehicles.
"I've been using it since 2021, the cost of transportation for Sayafuel costs can go down by 80 percent. Because there is a good tax, I pay tax 2, my ICE car is the same as my car for 1/10, for example for EVs. It's like if you've tried it good and we're sure of this," he said.
The issue of increasing awareness about environmental issues, he said, would also be a factor that encourages consumer interest in EVs. This includes a global trend that will provide EV models in accordance with the Indonesian market.
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