Electric Vehicles

Indonesia Plans EV Purchase Subsidies in 2023 to Spur Sales

  • EVs seen rising one hundred-fold to 2.5 million in three years
  • Subsidies being considered for conversions to electric engine
Visitors check a Hyundai Motor Ioniq 5 electric vehicle at the Gaikindo Indonesia International Auto Show in August.Photographer: Dimas Ardian/Bloomberg
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Indonesia plans to begin subsidizingBloomberg Terminal purchases of electric vehicles next year as the country aspires to have 2.5 million EV users by 2025 to boost demand and reduce air pollution.

The government is deciding on the magnitude and its precise mechanism, said Transport Minister Budi Karya Sumadi in an interview on Thursday, promising that the new rule will become a “game changer” for the domestic industry.