Indonesia launches electric vehicle subsidy scheme to attract investment from Tesla and BYD.

CTOnews.com, March 6 (Xinhua) according to Nikkei Asia, the Indonesian government recently announced that it will launch an electric vehicle subsidy program from March 20, which aims to promote domestic sales and production of electric vehicles and attract foreign investors to establish an electric vehicle industry chain in the country.

According to Indonesian Industry Minister Agus Gumiwang Kartasasmita, the plan will cover the sales of 200000 electric motorcycles and 35900 electric vehicles, as well as the modification of 50, 000 traditional gasoline vehicles. The subsidy will be based on factors such as battery capacity, mileage and localization, of which electric motorcycles will be eligible for a subsidy of 7 million rupiah (CTOnews.com), as will consumers who convert internal combustion engine motorcycles into electric motorcycles.

In addition, the Indonesian government will also provide tax incentives, land lease deductions and infrastructure support for enterprises that invest in the construction of electric vehicle production facilities in the country.

Indonesian President Joko Widodo Widodo said Indonesia has rich reserves of key battery metals such as lithium and nickel, as well as a consumer market of more than 270 million, and has the potential to develop a complete electric vehicle supply chain.

It is reported that Tesla, BYD, Hyundai and other well-known enterprises have close to reaching an investment agreement with the Indonesian government. These companies are expected to set up battery factories, assembly plants and R & D centers in Indonesia in the next few years.