Recently, Chinese car company BYD held a new car launch conference in Jakarta, the capital of Indonesia, and launched three models, marking its official entry into the Indonesian new energy passenger car market. "BYD's new energy vehicles entering the Indonesian market can make big cities like Jakarta cleaner, make our lives healthier, and drive the development of Indonesia's electric vehicle industry," said Luhut, Indonesia's Coordinating Minister for Marine and Investment Affairs. ”
In recent years, Indonesia** has actively introduced policies to encourage the development of the electric vehicle industry. Indonesia** has included the expansion of electric vehicle production in the Indonesian Economic Development Master Plan 2011-2025, and proposed a development plan for electric vehicle supporting infrastructure in the National Medium-Term Development Plan 2020-2024. Since 2019, Indonesia** has introduced a series of incentives for EV manufacturers, transport companies and consumers, including reducing import duties on relevant production materials, providing tax exemptions for EV companies, providing subsidies for consumers to purchase EVs, and encouraging the modification of electric propulsion systems for ICE vehicles. In April 2023, Indonesia** also significantly reduced the VAT on electric vehicles from 11% to 1%, driving a significant drop in the number of electric vehicles on sale**.
With the gradual implementation of preferential policies for Indonesia's electric vehicle industry, more and more Chinese new energy vehicle companies and battery manufacturers are actively expanding their investment in Indonesia and expanding the local market. As early as October 2018, BYD's first electric bus entered Indonesia, and now many BYD electric buses are driving on the streets of Jakarta. In May 2023, BYD and Indonesia's Coordinating Ministry for Marine and Investment signed a memorandum of understanding to explore the development of the electric vehicle industry in Indonesia. It is reported that BYD plans to invest US$1.3 billion in Indonesia to build a plant with an annual production capacity of 150,000 units, and establish a sales network with 50 dealerships nationwide by the end of 2024. Luhut said that BYD's investment in the Indonesian market is conducive to promoting Indonesia's energy transition and economic growth, and helping Indonesia cope with climate change.
Chinese car company Wuling has also performed very well in Indonesia's electric vehicle market. Wuling is the first Chinese car company to enter the Indonesian market and build factories in the country, and has established 150 sales and service outlets in the country, covering major cities and regions in Indonesia. In 2022, Wuling launched a small electric vehicle in Indonesia, which is favored by consumers due to its high cost performance. Local drivers believe that this car is not only the most discounted, but also small and low energy consumption, especially convenient for driving on narrow roads in the city.
With its innovative advantages in the field of electric vehicles, Nezha Automobile is also accelerating its "going overseas" to Indonesia. In October 2023, Nezha Automobile introduced its smart electric vehicles to Indonesia and signed a cooperation agreement with leading local automakers in Indonesia, planning to achieve local production of products from the second quarter of 2024. Sun Guang, assistant president of Nezha Automobile and executive vice president of the overseas business department, told this reporter that Indonesia supports the development of the electric vehicle industry and has launched a series of promotion measures to encourage people to buy electric vehicles.
Indonesia's Minister of Industry Agus Gumiwang said that Indonesia hopes to become a globally competitive regional production center for electric vehicles, and cooperation with China is in line with Indonesia's development plan. He stressed that China is one of the world's largest producers of electric vehicles, and Indonesia is ready to cooperate with China to develop an electric vehicle ecosystem, "which will also help ASEAN achieve its goals of green and sustainable development."
JAKARTA, January 31 (Xinhua) --