With this plan, the government hopes the sale of these vehicles in the market will stimulate the buyers to own them.
But the chair of the Indonesian Automotive Industries Association (Gaikindo), Yohanes Nangoi criticised the move. He reminded the government not to be careless in deciding on these issues that may cause the domestic automotive manufacturers to be unsettled.
He said Gaikindo does not want the automotive industry to die.
Nangoi said if the goal is only to test or build a market, it is ok. But there must be continued monitoring and supervising, he said.
Some people used the ‘do not buy a car in a sac’ terminology to describe the liberalisation of the importation of CBU cars.
They say the government should put a cap of two years for the importation of CBUs but must also promote the local manufacture of electric vehicles.
According to Reuters, Toyota has to invest $2 billion in Indonesia over the next five years. Part of this commitment is to produce Electric Vehicles or EVs.
Indonesia is aiming to start producing EVs in 2022 with a number of companies disclosing plans to invest in this segment.
Indonesia is also pushing for the development of battery production facilities to create a downstream industry.
Hyundai is also in the race to build EV plants in Indonesia.