JAKARTA, Feb 15: President Joko Widodo (Jokowi) says that electric vehicles are the future of Indonesia’s automotive industry as the country has supplies of raw materials for production.
The president said this after opening the 2024 Indonesia International Motor Show (IIMS) automotive exhibition at the Jakarta International Expo here on Thursday.
“I think the future of Indonesia’s automotive (industry) is in electric cars because we have the raw materials, such as nickel and others,” he said.
At the exhibition, Jokowi visited the booth of national and international automotive companies, including VinFast, a Vietnam-based automotive company.
He also entered the driver’s cabin of one of the VinFast products, VF 5, and tried the steering wheel.
Jokowi and his entourage visited a VinFast car assembly factory on January 13 in Hai Phong, Vietnam. He also noted that VinFast is interested in investing in Indonesia.
When asked about his interest in a certain automotive product in the exhibition, Jokowi did not specifically mention the type.
“I already have many cars at the palace,” he remarked.
Jokowi stated that so far, there is no plan from the government to increase the incentives for electric vehicles but added that it is committed to encouraging a reduction in value-added tax (VAT) for electric vehicle products.
The aim is to carry out the production of all electric vehicle products in Indonesia, he said.
“I think it will boost sales, and later, will boost the production of electric vehicle factories in Indonesia. That is the direction, and later, we will be able to compete with other countries,” he added.
–BERNAMA-ANTARA