The Indonesian government this week will consider offering vehicle manufacturers incentives for the local production of hybrid cars.
Industry Minister of M S Hidayat will hold talks with the Finance Ministry to discuss an incentive programme to attract hybrid car investment in the country. If an agreement is reached, the government will then expand the discussions to include the country’s main vehicle manufacturers.
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The government would welcome any measure that would help reduce consumption of heavily subsidised fuel in the country. Until now, very few hybrid cars have entered the country due to their high cost.
Indonesia is up against Thailand and Malaysia as a regional investment location for hybrid cars. Both these countries already offer tax incentives to promote local sales of these cars.
Honda Motor recently announced it would produce hybrid versions of the Brio small car in Thailand, while Toyota already makes hybrid Camry models these.
Malaysia has also become a significant market for hybrid cars, with sales of the Honda Insight and the Toyota Prius driven by tax incentives.
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