Indonesia's financial regulator, OJK, has expressed confidence that investment in electric vehicles (EVs) will remain positive despite the expiration of incentives for domestic manufacturers.
The statement comes as the government prepares to phase out the current incentives for EV production, which are set to expire on December 31, 2024. The incentives, known as CBU (Completely Built-Up) schemes, have been instrumental in encouraging local manufacturers to produce EVs and reduce reliance on imported models.
According to OJK officials, however, the regulator is optimistic that investment in EVs will continue unabated even without the incentives. This is attributed to growing demand for environmentally friendly transportation options, as well as advancements in technology that make EVs more competitive with their gasoline-powered counterparts.
"The market is driving demand for sustainable energy solutions, including electric vehicles," said a senior OJK official, who wished to remain anonymous. "We expect continued investment from both domestic and foreign players, even without the CBU incentives."
Industry analysts agree, noting that Indonesia's government has been working to improve its EV ecosystem through various initiatives, including the establishment of new charging infrastructure and the development of supportive policies.
"While the expiration of CBU incentives may present a challenge, we believe that investment in EVs will continue to grow," said a senior analyst at a leading research firm. "The Indonesian government's efforts to support the industry will likely drive growth and attract new players."
As the country gears up for the upcoming presidential election, the OJK is also focused on ensuring a smooth transition of incentives and policies, while maintaining investor confidence in Indonesia's EV sector.
"The OJK is committed to providing a stable regulatory environment that supports the growth of Indonesia's EV industry," said another official. "We will continue to work closely with stakeholders to ensure that the transition is seamless and beneficial for all parties involved."
The statement comes as the government prepares to phase out the current incentives for EV production, which are set to expire on December 31, 2024. The incentives, known as CBU (Completely Built-Up) schemes, have been instrumental in encouraging local manufacturers to produce EVs and reduce reliance on imported models.
According to OJK officials, however, the regulator is optimistic that investment in EVs will continue unabated even without the incentives. This is attributed to growing demand for environmentally friendly transportation options, as well as advancements in technology that make EVs more competitive with their gasoline-powered counterparts.
"The market is driving demand for sustainable energy solutions, including electric vehicles," said a senior OJK official, who wished to remain anonymous. "We expect continued investment from both domestic and foreign players, even without the CBU incentives."
Industry analysts agree, noting that Indonesia's government has been working to improve its EV ecosystem through various initiatives, including the establishment of new charging infrastructure and the development of supportive policies.
"While the expiration of CBU incentives may present a challenge, we believe that investment in EVs will continue to grow," said a senior analyst at a leading research firm. "The Indonesian government's efforts to support the industry will likely drive growth and attract new players."
As the country gears up for the upcoming presidential election, the OJK is also focused on ensuring a smooth transition of incentives and policies, while maintaining investor confidence in Indonesia's EV sector.
"The OJK is committed to providing a stable regulatory environment that supports the growth of Indonesia's EV industry," said another official. "We will continue to work closely with stakeholders to ensure that the transition is seamless and beneficial for all parties involved."