Indonesian President Prabowo Subianto announced a goal for Indonesia to start mass-producing its national electric vehicle (EV) by 2028.
The President’s plans
In a televised address last month, Prabowo revealed that the government is developing an EV “ecosystem” in the province of Subang, West Java. This is part of his administration’s push for higher domestic production of EVs and a faster shift from petrol vehicles to EVs.
“The success of a nation in the modern era is defined by its level of mastery of science and technology and by its ability to leverage technology to sustain its life,” he said.
The President called on the Indonesian public to cooperate in fulfilling his administration’s EV goals. He said that a shift from reliance on fossil fuels to renewable energy will strengthen Indonesia’s energy independence and reduce reliance on fossil fuels.
Securing support
In June, the government announced that it has secured a 60-hectare plot in Subang for the first phase of its production facility. The first phase targets an annual production capacity of 50,000 units. The planned development will cover up to 539 hectares and an increased annual production capacity of 300,000 vehicles.
“We are developing an Indonesian electric car that we hope will enter mass production by 2028 at the latest,” the President said.
While the national EV project has not yet been fully launched, the Jakarta Globe identified PT Pindad as a key participant in the project.
In his televised address, Prabowo also announced that the government has been preparing financial schemes and incentives to support the EV shift. Last month, it announced a new financial incentive policy which will prioritise local EV brands in the market.
Though details have not yet been announced, the executive director of the Institute for Development of Economics and Finance (INDEF) Esther Sri Astuti said that the policy will “stimulate growth” for the local industry.
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