Indonesia held green car test for incentive regulation

Indonesia will launch an electric car test to develop regulations. The Indonesian Ministry of Industry uses 10 Mitsubishi's eco-friendly cars to hold trials by the end of December and will be decisive in setting incentives for the 'green vehicle ecosystem' in Indonesia.

Indonesia's Minister of Industry, Airlangga Hartarto, said the test will be conducted by the end of December 2017 to further research on regulations related to incentives for environmentally friendly mobility that are currently being designed.

Tinuku Indonesia held green car test for incentive regulation

"It is expected that regulation and facilities will come out early next year where incentives for green cars will be increased," Hartarto said.

Hartarto has yet to deduce how much incentive will be given to producers who market environmentally friendly cars, but the government has promised to lower the "Sales Tax on Luxury Goods" for environmentally friendly vehicles.

Eco-friendly vehicles include full-powered electric, hybrid, plug-in hybrid, or the like. The cars will enter the Low Carbon Emission Vehicle (LCEV) Program. Tax reductions are expected to boost green car sales by 2025.

Hartarto also admitted there are still many obstacles for users to switch to a cleaner vehicle. The most noticeable thing nowadays is the unavailability of supporting infrastructure. The government also estimates the readiness of producers to enter the production phase takes three to five years.