Indonesia's Financial Services Authority (OJK) has expressed confidence that the country's electric vehicle (EV) financing is still positive despite the expiration of the current incentive package for electric car buyers, known as the CBU (Come in Built-Up) scheme.
The OJK acknowledges that the absence of incentives will likely have a negative impact on demand for EVs. However, officials remain optimistic about the long-term prospects of Indonesia's EV market.
"We expect the automotive industry to continue growing, driven by increasing demand from environmentally conscious consumers and government support for sustainable energy," said an OJK spokesperson. "Although the CBU scheme has expired, we believe that other incentives, such as tax breaks and subsidies, will help maintain a positive financing environment for EVs."
Industry insiders also point to the potential benefits of Indonesia's EV policy roadmap, which aims to increase the country's electric vehicle market share from 2% in 2020 to 20% by 2025. The OJK is working closely with automotive manufacturers and financiers to support this goal.
"Although we may not see a significant surge in demand immediately after the CBU scheme expires, we expect to see increased investment in EV manufacturing and infrastructure over the next few years," said a senior industry analyst. "This will help drive down production costs and increase access to financing for consumers."
Overall, while the expiration of the CBU scheme presents challenges for Indonesia's EV market, officials remain confident that the country can maintain a positive financing environment and achieve its ambitious targets.
The OJK acknowledges that the absence of incentives will likely have a negative impact on demand for EVs. However, officials remain optimistic about the long-term prospects of Indonesia's EV market.
"We expect the automotive industry to continue growing, driven by increasing demand from environmentally conscious consumers and government support for sustainable energy," said an OJK spokesperson. "Although the CBU scheme has expired, we believe that other incentives, such as tax breaks and subsidies, will help maintain a positive financing environment for EVs."
Industry insiders also point to the potential benefits of Indonesia's EV policy roadmap, which aims to increase the country's electric vehicle market share from 2% in 2020 to 20% by 2025. The OJK is working closely with automotive manufacturers and financiers to support this goal.
"Although we may not see a significant surge in demand immediately after the CBU scheme expires, we expect to see increased investment in EV manufacturing and infrastructure over the next few years," said a senior industry analyst. "This will help drive down production costs and increase access to financing for consumers."
Overall, while the expiration of the CBU scheme presents challenges for Indonesia's EV market, officials remain confident that the country can maintain a positive financing environment and achieve its ambitious targets.