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Reuters

Indonesia’s government used the Jakarta car show to double down on plans to drive production and sales of electric vehicles in Southeast Asia’s largest car market, but buyers are not sold yet.
The price premium on electric vehicles (EVs), questions about the availability of charging stations and doubts about new brands are reasons to hold back for now, said visitors to the car show in Tangerang, on the outskirts of Jakarta.
Dody Hartono, a visitor at the car show who plans to buy his first EV by 2024, said he wants a better deal.
“We have to make people interested first with EVs, starting with prices that should be 60 per cent cheaper,” the 54-year-old said.
BYD signs agreement to explore EV opportunities, build plant in Indonesia
Indonesia has ambitious EV growth plans as it races Thailand and India to build out an EV industry as an alternative to China, the world’s largest producer. However, EVs currently account for less than 1 per cent of cars on its roads.
The government has slashed the value-added tax on EVs to 1 per cent from 11 per cent, bringing the starting price of the cheapest Hyundai Ioniq 5 to under US$45,000 from over US$51,000 in Indonesia.
Hartono said a price between US$10,000 and US$13,000 would be more appealing.
There are only two EVs on offer near that range, Wuling’s Air EV Lite and Seres Group’s E1 at around US$12,300. The cheapest gasoline-powered car in Indonesia, the Daihatsu Ayla, starts under US$9,000.
China’s Seres Group is the EV manufacturing partner of technology company Huawei.

By comparison, one of the bestselling EVs in China, the BYD Seagull, starts at just over US$10,000, but other companies – and even China’s own carmakers – struggle to match that kind of pricing in export markets.
BYD’s ATTO 3, the bestselling EV in Southeast Asia in the first quarter, starts in Thailand at just over US$31,000.
Hendra Pratama, 42, a customer shopping for an EV at the car show, said the price premium in Indonesia needed to be reduced to attract lower-middle income consumers.
“It’s not affordable,” he said.
Toyota, its affiliate Daihatsu, and Honda account for two-thirds of auto sales in Indonesia but have been slow to pivot to EVs.
Indonesia not cutting China out in EV hub plan, Sandiaga Uno says
Hendra Budi, 44, said price was not an issue for him, but he wanted to have more confidence in the brands on offer. “If Toyota or Honda launched a full EV, we will be interested,” he said.
Toyota has said it has no plans yet to build an EV in Indonesia.
Indonesia’s industry ministry announced at the car show, which concluded on Sunday, that it would offer carmakers two more years to qualify for production incentives.
The announcement was followed by investment commitments from China’s Neta EV brand and Japan’s Mitsubishi Motors.
Indonesia has set a target of producing some 600,000 EVs by 2030. That would be more than 100 times the number sold in Indonesia in the first half of 2023.
Indonesia’s chief economic minister said he hoped the Jakarta car show would drive sales of more than 26,000 vehicles, the number sold at the previous show last year.
The final number of cars sold – and the share of EVs in that – was not available as of Monday.


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Indonesia

As Indonesia pushes EV dream, car shoppers stay cautious: ‘it’s not affordable’

A Toyota electric car at the 2023 Jakarta car show in Tangerang, Indonesia. Photo: handout

Japanese carmaker Honda displays the electric vehicle “Honda e” at the 2023 Jakarta car show in Tangerang, Indonesia. Photo: AFP

Indonesia still keen to court Elon Musk, ‘not worried’ by Tesla’s Malaysia base

A man walks in front of Tesla banners in Kuala Lumpur on July 20. Photo: AFP 

Tesla Model Y electric vehicles are launched in Kuala Lumpur, Malaysia, on July 20, 2023. Photo: Bloomberg

Indonesian President Joko Widodo met Elon Musk at the SpaceX launch site in Texas, in May last year. Photo: Handout

Indonesia not cutting China out in EV hub plan, minister Sandiaga Uno says

Indonesian Tourism and Creative Economy Minister speaks at the Ocean Park Fullerton Hotel in Hong Kong. Photo: SCMP / Jonathan Wong

Indonesian Tourism and Creative Economy Minister Sandiaga Uno. Photo: SCMP / Jonathan Wong

Visitors at the Gaikindo Indonesia International Auto Show 2022 in Tangerang, Indonesia on August 16, 2022. Indonesia hoped to see continued Chinese investment in Indonesian industries, including in the manufacturing of electric vehicles. Photo: EPA-EFE

Chinese tourists arrive at Ngurah Rai International Airport in Bali on January 23, 2023. Nearly 1.2 million Chinese tourists visited Bali in 2019, about one-fifth of the 6.2 million total foreign arrivals that year. Photo: EPA-EFE

In a 2019 poll, Sandiaga was the vice-presidential pick of President Joko Widodo’s rival-turned-ally Prabowo Subianto (pictured). Photo: Reuters

News

Asia

Southeast Asia

Indonesia has big plans to grow production and sales of electric vehicles but prospective car buyers say EV prices have to fall further
It wants to create a local EV industry as an alternative to China but EVs currently account for less than 1 per cent of cars on its roads


Indonesia’s ambition to quickly expand its electric vehicle market is facing resistance from prospective buyers who find EVs expensive, and foreign carmakers.


Electric & new energy vehicles