The Indonesian Ministry of Finance recently announced tax incentives of 5% and 10% for electric buses with a localisation rate of 20% and at least 40%, respectively, in a bid to spur the use of public transport using electric motors in the country.
Jakarta (VNA) – The Indonesian Ministry of Finance recently has announced tax incentives of 5% and 10% for electric buses with a localisationrate of 20% and at least 40%, respectively, in a bid to spur the use of publictransport using electric motors in the country.
Developing electric buses is part of the solutions to realiseIndonesia’s commitment related to smart and environmentally friendly cities.
In Jakarta, spurring electric vehicle (EV) production and sales also aims to contribute toimproving air quality and reducing pollution.
However, the development of electric bustechnology in the Southeast Asian nation is not as fast as other EVs such ascars and motorbikes.
Beni Sukadis, Coordinator of the Indonesian Institute for Strategic and Defence Studies, said Indonesia aims to promote clean energy to fulfill itscommitment to neutralise emissions before 2060.
Therefore,developing electric buses is an inevitable trend that Jakarta pursues, he said,adding that it is making efforts to build a green public transport system, towards a smart and environmentally friendly city in the future.
Municipally-owned land transportation company Transportasi Jakarta (TransJakarta) is planning to gradually increase the numberof electric buses to about 500 large and medium-sized vehicles in 2024 and2025. The plan aims to reduce carbon emissions and improve air qualityin Jakarta, helping to increase the ratio of public transport to 60% andelectrifying 100% of TransJakarta’s buses before 2030./.
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Illustrative image (Photo: //indonesia.un.org/) 
