Jakarta, Clear Skies Magazine: Indonesia’s Industry Minister Agus Gumiwang Kartasasmita and Finance Minister Purbaya Yudhi Sadewa held a meeting in Jakarta on Tuesday to discuss potential incentives for electric vehicles (EVs) aimed at strengthening the country’s industrial sector.
Speaking after the meeting, Kartasasmita said the proposed incentives are gaining importance as Indonesia seeks to promote environmentally friendly transportation, reduce carbon emissions, and cut fuel consumption, particularly amid rising global crude oil prices.
He emphasized that EV development is being positioned as a key component of Indonesia’s broader economic strategy, especially in enhancing the resilience of the manufacturing sector and safeguarding employment.
“Incentives or stimuli are indeed aimed at strengthening our industries, which is crucial to protect our workers,” he told reporters at the Finance Ministry.
The minister also noted that ongoing geopolitical tensions, including conflict involving Iran and the United States, have indirectly increased the appeal of EVs by highlighting vulnerabilities in global energy supply and the need to reduce reliance on fossil fuels.
Citing data from the Association of Indonesian Automotive Industries, Kartasasmita pointed to a growing shift in market preferences toward electric-powered vehicles.
However, he clarified that the Ministry of Industry does not have the authority to determine the final structure or timeline of the proposed EV incentives, noting that such decisions fall under the purview of the Finance Ministry.
Beyond EV policy, the two ministers also exchanged views on strategies to increase Indonesia’s manufactured exports. According to data from Statistics Indonesia, the manufacturing sector contributes between 75 and 80 percent of the country’s total exports.
Despite this, Kartasasmita noted that only around 20 percent of domestically produced goods are exported, with the majority consumed within the domestic market. He said the government aims to raise export levels while continuing to meet local demand.
The discussions underscore Indonesia’s efforts to align industrial growth with sustainability goals while strengthening its position in global markets.