Government Negotiations with Tesla Depends on Consumer Incentives

VIVA – Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan emphasized that negotiations with Tesla Inc are still ongoing and will depend on incentive policies provided by the government to consumers.

"Yes, it's going on, we are waiting now, waiting, hopefully, next week the incentives will come out. Not subsidies (but) incentives given to motorcycles and cars. (Tesla negotiations) are subject (to) this (incentive)," the minister said when met at Jakarta on Friday.

However, Minister Pandjaitan admitted that he could not yet disclose in detail the incentive scheme that the government would provide, "It will be announced later, just wait for the time," he added.

The government is still eyeing Tesla to invest not only in electric vehicles but also in electric vehicle batteries, Minister Pandjaitan added.

"The car must have a battery. The battery is under the chassis." He said.

Earlier, the minister said that the government will provide incentives for the purchase of electric motors amounting to IDR 7 million and a tax reduction for electric cars of around 10 percent.

According to him, the figure is equivalent to the incentives offered by Thailand until the market share of electric vehicles for their car sales reaches ten percent.

Previously, Industry Minister Agus Gumiwang Kartasasmita also revealed the range of incentives prepared by the government, among others, for the purchase of electric cars up to IDR 80 million, hybrid-based electric cars received an incentive of IDR 40 million and electric motorcycles received IDR 8 million if new purchases while for the conversion of motorcycles to electric motors will be given around IDR 5 million.