KONTAN.CO.ID - JAKARTA. Indonesia will provide incentives to boost sales of electric vehicles (EVs) starting March 20 as part of efforts to accelerate adoption and attract investment into production, senior cabinet minister Luhut Pandjaitan said on Monday.

The programme will cover sales of 200,000 electric motorbikes and 35,900 electric cars, said Industry Minister Agus Gumiwang Kartasasmita.

The two ministers spoke at a news conference.

Indonesia is keen to develop domestic EV production facilities to take advantage of its rich nickel reserves, an important material to produce batteries.

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Officials have been trying to attract investment from electric car makers such as the United States' Tesla and China's BYD Auto. South Korea's LG and Hyundai have started construction on plants to assemble batteries and electric cars in the Southeast Asian country.

"We believe with this programme, (auto companies) would be more attracted," Agus said, adding that companies eligible to join the programme are required to have a plant in Indonesia.

Editor: Anna Suci Perwitasari