Indonesia's Financial Regulatory Agency (OJK) has expressed confidence that the country's electric vehicle (EV) financing will remain positive even after the expiration of the incentive for the domestic production of battery cells, commonly referred to as CBU.
The OJK believes that the removal of this incentive will not significantly impact the growth of Indonesia's EV industry. Instead, it is expected to accelerate the sector's development by allowing foreign investors to directly import vehicles with battery cells, thereby reducing costs and increasing competition.
The agency notes that the expansion of EV manufacturing in Indonesia has already gained significant momentum, with several major players entering the market. The OJK is optimistic that this growth will continue unabated, even without the CBU incentive.
In fact, the agency expects the number of EVs on Indonesian roads to increase substantially in the coming years, driven by increasing demand for environmentally friendly vehicles and government efforts to promote sustainable energy.
The OJK has emphasized the importance of a level playing field for all manufacturers, whether domestic or foreign, in order to ensure the long-term success of Indonesia's EV industry. By removing the CBU incentive, the agency aims to create an environment that fosters innovation and competition, ultimately benefiting consumers.
Overall, while the removal of the CBU incentive may pose some challenges, the OJK is confident that Indonesia's EV sector will continue to thrive, driven by a combination of government support, technological advancements, and increasing consumer demand.
The OJK believes that the removal of this incentive will not significantly impact the growth of Indonesia's EV industry. Instead, it is expected to accelerate the sector's development by allowing foreign investors to directly import vehicles with battery cells, thereby reducing costs and increasing competition.
The agency notes that the expansion of EV manufacturing in Indonesia has already gained significant momentum, with several major players entering the market. The OJK is optimistic that this growth will continue unabated, even without the CBU incentive.
In fact, the agency expects the number of EVs on Indonesian roads to increase substantially in the coming years, driven by increasing demand for environmentally friendly vehicles and government efforts to promote sustainable energy.
The OJK has emphasized the importance of a level playing field for all manufacturers, whether domestic or foreign, in order to ensure the long-term success of Indonesia's EV industry. By removing the CBU incentive, the agency aims to create an environment that fosters innovation and competition, ultimately benefiting consumers.
Overall, while the removal of the CBU incentive may pose some challenges, the OJK is confident that Indonesia's EV sector will continue to thrive, driven by a combination of government support, technological advancements, and increasing consumer demand.