Electric Cars Continue to Come to Indonesia

Indonesia is a potential market for expanding the electric vehicle business. A number of producers continue to arrive.

KOMPAS/RIZA FATHONI

The issue of air pollution is not new. The situation of the community being threatened by air pollution has been going on for a long time. There is also no lack of research evidence showing the threats of air pollution's impact. However, it has not yet been able to encourage significant efforts in controlling air pollution. As a result, residents are increasingly suffering from the suffocating air pollution. Chairman of the Indonesian Electric Vehicle Industry Association (Periklindo) Moeldoko (second from the left) accompanied by President Director of PT Dyandra Promosindo Daswar Marpaung, member of the Management Council of Messe Frankfurt Stephan Buurma, and Secretary General of Periklindo Tenggono Chuandra Phoa (from left to right) officiated the opening of the Periklindo Electric Vehicles Show (PEVS) 2024 automotive exhibition at the Jakarta International Expo (JIEXpo), Kemayoran, on Tuesday (30/4/2024).

JAKARTA, KOMPAS — A number of manufacturers continue to come to market electric cars and motorbikes in Indonesia. A total of 10 electric car manufacturers and 9 electric motorbike manufacturers participated in the 2024 Periklindo Electric Vehicle Show (PEVS) at JIExpo Kemayoran, Jakarta, April 30 to May 5 2024. A total of 116 participants participated in that event.

In the four-wheeled segment, a number of brands participated in the exhibition held by the Indonesian Electric Vehicle Industry Association (Periklindo) together with PT Dyandra Panggangndo. Among them are Wuling, Hyundai, Neta, BYD, and Seres. On two wheels, Gesits, Volta, Greentech, Kymco, iONEX and Rakata took part. There are also a number of supporting industrial brands automotive as well as the State Electricity Company (Persero) or PLN as electricity providers.

Also read: BYD Officially Launches, Showing Three Flagship Products

The Chairman of Periklindo, Moeldoko, said during the opening ceremony on Tuesday (30/4/2024) that their institution serves as a bridge between members and the government, with the hope of further developing the electric vehicle ecosystem. PEVS 2024 is targeted to become a business transaction event related to electric vehicles, with a transaction value target of Rp 400 billion.

PEVS 2024 is also an educational platform for the public regarding electric vehicles. "We hope to raise public awareness of electric vehicles. Several events in PEVS 2024 will also show how the electric vehicle industry is becoming more attractive with the use of local content," said Moeldoko.

Deputy Coordinator of Infrastructure and Transportation at the Coordinating Ministry for Maritime Affairs and Investment, Rachmat Kaimuddin, stated that the entry of new electric vehicle brands is expected to spur the growth of electric vehicles. This will be supported by various incentives provided by the government that will make electric vehicles more attractive.

"We are currently looking at the (target) due to changes in the electric vehicle industry map. There are many new products. For four-wheeled vehicles, we aim for at least 50,000 units. That is more than three times the target for 2023, which is around 16,000 units. The target for two-wheeled vehicles has not been calculated yet," he said.

There has been a zero percent tariff incentive for the Luxury Goods Sales Tax (PPnBM) and other taxes that are directly enjoyed by buyers.

Regarding additional incentive support, Rachmat said that he will see whether the policy will be continued by the next government. However, he stressed that even without additional incentives, there is already a zero percent tariff incentive for Luxury Goods Sales Tax (PPnBM) and other taxes that are enjoyed directly by buyers.

"Later we will see whether the need for incentives continues or not. At that time, we encouraged (with incentives) for the industry to become mature. So that more industries can enter. "But, we will also communicate with the next government later," said Rachmat.

KOMPAS/RIZA FATHONI

Electric motorcycles caught visitors' attention at the Periklindo Electric Vehicles Show (PEVS) 2024 automotive exhibition at the Jakarta International Expo (JIEXpo) on Tuesday (30/4/2024). The exhibition aims to bridge the interests of all members with the government, producers, and consumers of electric vehicle industry in the country.

Battery supply chain

One of the supporting factors for the development of the domestic electric vehicle industry is battery production in Indonesia. The Hyundai and LG Energy Solution consortium battery factory, in Karawang, West Java, will produce battery cells in 2024. Rachmat hopes that many industries will take advantage of domestic battery production.

"This year LG will be completed. If it is made in Indonesia, the supply chain will be available. The hope is that the users, namely these manufacturers, can also enjoy it. However, it must be realized that electric vehicle batteries based on nickel are for more advanced cars, with higher energy density," he said.

Also read: Seeing the Latest Developments in Electric Vehicles

Nevertheless, Rachmat continued, the government will support any type of electric vehicle battery developed in Indonesia, be it nickel or other types of batteries. "The main thing is that the batteries are made in Indonesia. The supply chain is in Indonesia," he said.

KOMPAS/RIZA FATHONI

The booth of an electric charging equipment manufacturer was featured in the Periklindo Electric Vehicles Show (PEVS) 2024 automotive exhibition at the Jakarta International Expo (JIEXpo) on Tuesday (30/4/2024). PEVS 2024 is the largest electric vehicle exhibition in Southeast Asia. The event was attended by 116 participants from electric vehicle brands, supporting industries, and vehicle accessories. The exhibition aims to reach transactions worth Rp 400 billion.

Factory in Subang

One of the brands that is starting to enliven the electric vehicle industry in Indonesia is BYD, which officially began selling its cars in Indonesia in early 2024. One of the leading manufacturers at the global level then decided to build a factory in the Subang Smartpolitan Industrial Zone, Subang Regency, West Java.

The signing of a cooperation agreement between BYD and PT Suryacipta Swadaya, the industrial park operator, took place on Tuesday (30/4/2024). "BYD's investment will not only create thousands of new job opportunities and boost the economy, but will also enhance technology transfer and expertise in manufacturing electric vehicles," said Eagle Zhao, President Director of PT BYD Motor Indonesia.

BYD Indonesia also ensures that thousands of electric vehicles will be delivered to customers starting in June 2024. In addition, on August 13, 2024, dealerships spread across eight cities in Indonesia will begin operating to serve customers.

CEO of PT Sokonindo Automobile, Alexander Barus, stated that they are presenting two segments at PEVS 2024 as a strategic step in developing the Indonesian automotive market, namely commercial and passenger. The two electric vehicle brands are DFSK, which offers commercial electric vehicles that have been present for several years, and Seres, which is a passenger vehicle.

"Seres E1 is our initial stage of entering passenger (electric vehicle types) in Indonesia. "We have launched it and provide competitive prices," he said. Seres E1 has two variants with a price of IDR 189 million (B-Type) and IDR 219 million (L-Type, on-the road Jakarta).