Jakarta. Japanese auto giant Toyota supported the Indonesian government’s plan to offer incentives for electric vehicles although its local subsidiary Toyota Astra Motor has yet to produce emission-free vehicles for the domestic market.

The government recently announced that it would offer Rp 80 million ($5,128) incentive for each electric car purchase. Hybrid electric cars will get a Rp 40 million incentive. Electric motorbikes as well as converted motorbikes will also receive Rp 8 million and Rp 5 million incentives, respectively. Locally manufactured EVs will be eligible for the incentives.

“We certainly appreciate the plan. As one of the industry players who have been here with [vehicle] electrification in Indonesia for quite a long time, I think the plan could help popularize the adoption of EVs in Indonesia,” Anton Jimmi Suwandy, the marketing director at Toyota Astra Motor, told Beritasatu.com on Friday.

Anton said he was still unable to give any further comments on the subsidy impact on the automotive industry since the government is still working on the incentive scheme.

“So we will have to wait and see the regulations, including its operational guidelines. So once they come into force, we might be able to predict how big its impact will be,” Anton said.

Toyota Motor Manufacturing Indonesia (TMMIN) has begun producing its first hybrid car in the country, namely Kijang Innova Zenix, at its assembly plant in Karawang, West Java.

Earlier this week, Industry Minister Agus Gumiwang said that the government was still finalizing the incentives for EV purchases.

“We will give incentives to buyers of electric cars or motorbikes [produced by] manufacturers in Indonesia,” the minister said.

Toyota is a long-time market leader in Southeast Asia's biggest country and currently has around 31 percent of the market share. Together with sister company Daihatsu Motor Indonesia, Toyota controls more than 50 percent of the national auto market.

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