Subang – Incentives for hybrid cars remain a hot topic amidst the current sluggish car sales in Indonesia. As it stands, hybrid cars have not received any incentives, despite their impressive sales figures compared to pure electric cars or Battery Electric Vehicles (BEVs), which have benefitted from government incentives.
During the January-December 2023 period, hybrid cars recorded sales of 54,179 units, significantly outpacing BEVs, which only achieved sales of 17,051 units. This disparity has prompted discussions on the need for incentives for hybrid vehicles.
Acting Director General of Ilmate at the Ministry of Industry (Kemeperin), Putu Juli Ardika, highlighted the importance of these incentives during the groundbreaking ceremony for the construction of the Vinfast factory in Subang, West Java, on Tuesday, July 16, 2024.
“Incentives are necessary so that we are not left behind by neighboring countries such as Thailand,” Putu stated. “For now, it’s just a discourse. We will try to push so that at least it can be harmonized, so we are not far behind Thailand.”
Putu emphasized that Indonesia’s main rival in the hybrid car market is Thailand. “Currently, there are many hybrid vehicles entering Thailand. We must not be late to respond to that. If we can accelerate the process of providing incentives for hybrid cars, it will be beneficial. We are pushing for this discourse to become a reality as soon as possible,” he explained.
Hybrid car incentives are already included in the Low Carbon Emission Vehicle (LCEV) program, as stated in Government Regulation (PP) Number 74 of 2021 (PP74/2021). However, Putu pointed out that, so far, incentives have only been implemented for electric cars or BEVs, while other energy-efficient motor vehicles (KBH2) have been left out.
“So far, incentives for LCEVs have been stated in PP74/2021, but only electric cars or BEVs have been implemented, while others have already been Energy Efficient Motor Vehicles (KBH2),” Putu concluded.
Incentives and the Hybrid Car Market
The consideration for hybrid car incentives is crucial for maintaining Indonesia’s competitiveness in the automotive industry. As the global automotive market shifts towards greener alternatives, providing incentives for hybrid vehicles could stimulate sales and encourage consumers to opt for more environmentally friendly options.
Thailand has set a precedent by welcoming numerous hybrid vehicles, creating a robust market for these cars. If Indonesia fails to match these incentives, it risks falling behind in the regional automotive market. This concern is echoed by industry experts who believe that incentives could significantly boost hybrid car sales, similar to the impact seen with BEVs.
The Government’s Role and Industry Expectations
The Indonesian government plays a pivotal role in shaping the future of the automotive industry. By considering incentives for hybrid cars, the government is taking a step towards fostering a more sustainable and competitive market. Industry stakeholders are optimistic that this discourse will soon translate into concrete policies.
Automotive manufacturers are particularly keen on this development. With the construction of the Vinfast factory in Subang, the industry is poised for growth. However, for this growth to be sustainable, supportive government policies are essential.
The Future of Hybrid Cars in Indonesia
The potential for hybrid cars in Indonesia is vast. With the right incentives, hybrid vehicles could become a mainstream choice for consumers, reducing the nation’s carbon footprint and contributing to global efforts to combat climate change.
As the government deliberates on this matter, the automotive industry and consumers alike are watching closely. The introduction of incentives for hybrid cars could mark a significant turning point for Indonesia’s automotive market, aligning it with global trends towards sustainability.