STRATEGIC ASSESSMENT. The technical train for the Jakarta-Bandung High-speed Railway (KCJB) project was involved in an accident in Campaka, Campakamekar Village, Padalarang District, West Bandung Regency, resulting in two deaths and five injuries. West Java Police Director Sudarto said the police will conduct further investigations into the accident.
According to information at the scene, the PT Kereta Api Indonesia China (KCIC) construction train was being driven by a locomotive speeding from Padalarang to Jakarta when it failed to brake and eventually went off the track while crossing an unfinished rail.
Everyone applauded when a silver-bodied high-speed train decorated with a flash of red last month rolled slowly out of Tegalluar station in Bandung, Indonesia’s West Java province.
The spectators included Chinese President Xi Jinping and Indonesian President Jokowi when witnessing the operational trial of the Jakarta-Bandung high-speed train, on the sidelines of a bilateral meeting following the G20 Summit in Bali.
The Jakarta-Bandung railway is a landmark project under China’s Belt and Road Initiative as the country expands its presence in Southeast Asia. It also represents a key step in the Indonesian government’s infrastructure push.
Meanwhile, President Jokowi, in a press statement at the Merdeka Palace called for incentives in purchasing electric cars and motorcycles in order to spur the growth of the electric vehicle industry.
“We hope that with these incentives, the electric car industry and electric motors can develop in our country. If it becomes a reality, taxes and non-tax state revenues will almost certainly rise,” the President said.
Indonesia may allocate $320.41 million (IDR5 trillion) from next year’s budget to incentivize electric vehicle (EV) purchases, though details of the scheme were still being finalized, Industry Minister Agus Gumiwang Kartasasmita said on Wednesday.
Economic Affairs Coordinating Minister Airlangga Hartarto said at a news conference that authorities are detailing how much they could provide per sale based on the budget allocation. He said the government is also considering subsidizing electric bus sales.
Indonesia targets 20 percent of overall car sales in 2025 to be EVs, Airlangga said. Companies that have invested or have announced planned investments in EV manufacturing in Indonesia include Toyota Motor Corp, Mitsubishi Motors Corp, and Hyundai Motor Co.
Toyota Motor will add an electric vehicle for the first time to its lineup of strategic models geared toward emerging economies as early as next year in Thailand, where the automaker is defending its traditional stronghold from Chinese and South Korean rivals.
In Indonesia, President Joko “Jokowi” Widodo has pledged to realize net-zero carbon emissions by 2060. Drawing direct investment in the EV industry is part of these plans. Hyundai Motor and Chinese-American joint venture SAIC GM Wuling Automobile began manufacturing EVs on Indonesian soil this year. Toyota has yet to elaborate on similar plans. SAIC GM Wuling alone accounted for 70% or so of Indonesia’s EV sales between January and October.
The government is currently formulating a special incentive for electric vehicle consumers aimed to encourage the public to switch to transportation with renewable energy sources in 2023. The incentives will likely come as a discount on purchasing electric cars and electric motorcycles. The Indonesian government is finalizing an incentive scheme for the purchase of electric vehicles (EVs) produced by manufacturers inside the country, in a bid to force industry players into realizing their investment. “The government is now calculating the incentives. These incentives are formulated after studying numerous regulations from countries with relatively higher-usage rates of EVs,” said Industry Minister Agus Gumiwang Kartasasmita in Brussels, as quoted from his ministry’s official statement.
Citing Antaranews, Minister of Industry Agus Gumiwang Kartasasmita said that he will ask for House legislators’ permission to do so. “It is being formulated by the government. And yes, we will surely ask for permission from the House of Representatives (DPR),” said Minister Agus.
He revealed the amount of incentives would vary for different kinds of vehicles, detailing that each electric car is lined up for $5,122 (IDR80 million) worth of incentives, while hybrid ones are set to get around IDR40 million each.
“We will calculate the subsidy, but approximately an incentive of Rp80 million will be given to purchasing an electric car, while for the purchase of hybrid-based electric cars, an incentive of Rp40 million will be given,” he added.
Indonesia is planning to offer incentives for makers of electric cars and motorbikes, and a 40% of TKDN (domestic component level) may be required for the vehicles to be eligible for the incentives, according to a local manufacturer.
The Korea Automotive Technology Institute says the domestic auto industry should more proactively use Asean-region members like Indonesia and Thailand as production and export bases for electric vehicles (EV).
With the Asean Trade in Goods Agreement of 2018 and the Asean Mutual Recognition Arrangement on Type Approval for Automotive Products (APMRA) of 2022 now in effect, the report said auto imports and exports within Southeast Asia are expected to become smoother.
With South Korea, the European Union and Japan among its members, APMRA is expected to accelerate trade by simplifying the approvals process of certain auto equipment trading among Asean members. Japan has long dominated the Asean market, but China is aggressively advancing there amid a rapid transition to EVs in Southeast Asia.
