Jakarta (VNA) – Indonesia’sIndustry Ministry is preparing measures to achieve the government's target of20 percent of the two million cars produced by 2025 being electric, saidIndustry Minister Airlangga Hartarto.
The country will conduct tests on severalelectric cars in December 2017 and run a pilot project. Activities related totechnical work, including preparing machinery, batteries, energy sources andmaterials for electric car batteries are underway.
The Indonesian government has been consideringusing fuel cells, which use hydrogen, since Indonesia has large amounts of coalthat could produce hydrogen.
Hartarto said fiscal incentives are animportant part of the efforts to encourage electric car development becausewithout incentives the prices of electric cars would be 30 percent higher than thatof conventional ones.
Incentives could be given to theinstitutions that carry out research on electric car components like electricmotors, batteries and power control units, he added.
The Indonesian Industry Ministry hasworked with the Financial Ministry in this field and a decision on incentivesis expected to be made by the end of this year. The incentives could be givenin stages based on the commitments of the manufacturers.
Earlier, Indonesia pilotedelectric car Nissan Note e-Power, developed by Nissan Motor Indonesia.
The country will also workwith the Republic of Korea (RoK) in producing lithium-ion batteries forelectric cars and sending young chemical engineers for training in the RoK.-VNA