Sana all! Indonesia may offer up to ₱283k discount for new electric vehicles

Buying an electrified vehicle is going to be a whole lot easier, at least in Indonesia.

Our friends from AutoFun Indonesia reported that the Indonesian government is finalizing a host of financial incentives for people looking to buy a hybrid-electric or fully electric vehicle (EV).

As of press time, an estimated 80 million rupiah (₱283,000) discount may be given to full EV buyers, while hybrid owners may get 40 million (₱141,000) rupiah off.

However, these will only be offered to models that are manufactured in Indonesia. These currently include the:

• Hyundai IONIQ 5

• Wuling Air EV

• Toyota Kijang Innova Zenix Hybrid

• Wuling Almaz Hybrid

• Suzuki Ertiga Hybrid

Indonesian Minister of Industry Agus Gumiwang Kartasasmita said he hopes the program will incentivize carmakers to invest in electrified vehicles in Indonesia.

PT Toyota Astra Motor (TAM) marketing director Anton Jimmy Suwandi praised the government’s move.

"Rencana ini bisa membantu untuk semakin mempopularisasi adopsi kendaraan elektrifikasi ya di Indonesia, dan impact nya tentu ke emisi karbon yang bisa dikurangi dari mobilitas berpotensi semakin besar dengan asumsi semakin banyak yang bisa masuk ke elektrifikasi market kita,” he said.

[Translation: This plan can help to further popularize the adoption of electrified vehicles in Indonesia. And of course, the impact on carbon emissions that can be reduced from mobility has the potential to be even greater with the assumption that more and more can enter our electrified market.]

EV prices may drop in PH, too

Meanwhile, the Philippine government is still working on its own set of financial incentives for electrified vehicles.

Electric Vehicle Association of the Philippines president Edmund Araga told AutoFun Philippines that if the government lifts tariffs on imported EVs next year, prices will likely go down.

“As mentioned earlier by (Energy Department) Director Patrick (Aquino), we're just waiting for the approval now being discussed by the Cabinet members and for signing of the President by executive order,” he said at the sidelines of the Nov. 24, 2022 launch of Solarius EV Charging in Makati City.

“And then from there, looking at probably by December within this year, baka mag-rollout 'yun,” Araga added. “And then yung implementation noon, siyempre i-publish pa 'yun, most probably by January.”

[Translation: And then from there, looking at probably by December within this year for the rollout. And then the implementation, of course it will be published first, most probably by January.]

Other EV incentives eyed

Araga also said additional fiscal incentives may become available to EV and hybrid buyers.

“Incentives are being passed through CREATE law and under the EVIS strategies of DTI (Department of Trade and Industry),” he said. “So may [there are] different program naman from a different government sector na naka-support sa [that supports] EVIDA.”

EVIDA stands for the Republic Act 11697 or the “Electric Vehicle Industry Development Act,” which lapsed into law on Apr. 15, 2022, until then-President Rodrigo Duterte.

It does not include discounts and tax perks that EV buyers in other countries enjoy.

Under the Tax Reform for Acceleration and Inclusion Law or TRAIN Law, the government currently provides excise tax exemptions for battery EVs. It also imposes 50 percent of the excise tax rate for hybrids.

However, Section 28 of the EVIDA’s implementing rules and regulations currently pushes for creating an EV incentive strategy for manufacturers that includes a provision for future government subsidies for EV buyers.

Meanwhile, CREATE stands for Republic Act 11534 or the “Corporate Recovery and Tax Incentives for Enterprises” Act, which reduces corporate income tax rates and rationalizes tax relief measures for Philippine businesses.

Finally, EVIS refers to the DTI’s Electric Vehicle Incentive Strategy, which the agency said is a “fiscal and non-fiscal support program for the transport sector to enable its transition from traditional motor vehicles to electric vehicles.”

How big of a discount should the Philippine government offer before you buy an EV?