Economist Josua Pardede of the Perbanas Institute has encouraged the Indonesian government to provide continued electric vehicle (EV) incentives.

According to Josua, this is necessary to support the automotive industry.

Economist Urges Continued EV Incentives

According to a report by ANTARA News, the economist also said that EV incentives are necessary amid the decline in middle-class purchasing power.

He pointed out that surge in the purchase of EVs took place in December because people were rushing to buy before the incentives were expected to expire.

"If incentives are stopped without replacement, prices will rise and EV sales will fall," he said. "This will inevitably affect the industry's performance this year."

'EV incentives must continue, but with more targeted arrangements," the economist added. "Conditional incentives could be a win-win solution, encouraging domestic investment while safeguarding fiscal space."

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Chinese Automakers at Jakarta Auto Show

His comments coincide with the Jakarta Auto Show, which became a venue for some Chinese automakers to showcase their EVs entering the Indonesian market.

According to a report by The Jakarta Globe, Jetour introduced its T2 electric SUV, offering a promotional price of Rp 568 million. Two other SUV models, the Dashing and the X70 Plus, are also showcased at the show.

Another Chinese automaker, Changan, is presenting its Deepal S07 electric SUV with a price tag of Rp 599 million.

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