Indonesia urged to emulate Thailand’s EV dominance

A prominent business executive, known for his roles as president of the ASEAN Business Advisory Council (ASEAN-BAC) and the chairman of the Indonesian Chamber of Commerce and Industry (Kadin), advocates cooperative efforts between Thailand and Indonesia to establish a robust and resilient supply chain within Southeast Asia that caters to the global EV market.

In the early part of this year, Thailand saw a noteworthy increase in EV registrations, hitting over 32,000 within the first five months. In comparison, Indonesia, a country with a population exceeding 270 million, managed to sell just about 10,000 EVs throughout 2022, with this year’s sales predicted to crest at roughly 50,000 units.

According to Arsjad Rasjid, the exceptional progress in Thailand’s EV market could be attributed to effective public-private partnerships and favourable government policies, incorporating an 80% tax reduction that was activated in November 2021 and is slated to continue until November 10, 2025. Additionally, there have been subsidies within the bracket of 70,000-150,000 baht (US$2,000 to US$4,350) made available for EVs meeting strict criteria since May 2022.

Such initiatives enable automakers to reduce the price difference between traditional vehicles and EVs, consequently heightening consumer attraction towards EVs. As a result, automotive manufacturers like BYD, GWM, SAIC, Hozon, and Tesla have seized this incipient market opportunity, facilitating a broader spectrum of choices for consumers, reported Bangkok Post,

Rasjid suggests that Thailand’s successful EV adoption model can serve as an instrumental example for other countries, Indonesia included. By incorporating certain aspects of Thailand’s strategies, Indonesia could expedite the expansion of its own EV market.

In light of Thailand’s strong foothold in the automotive market, particularly with regard to EVs, and its appeal to international automakers, Rasjid envisions a fruitful collaboration between Indonesia and Thailand in the areas of EV production and automotive batteries. This union could yield benefits from creating joint ventures and partnerships between Indonesian and Thai companies, which could fortify the automotive supply chains in both nations and establish a formidable EV industry within Southeast Asia.

Focusing on micro, small and medium enterprises (SMEs) and the tourism business, the merger of Indonesia’s Quick Response Code Indonesian Standard (Qris) and Thailand’s PromptPay QR facilitates significant opportunities. Rasjid sees an efficient and secure payment solution continuing to expand its reach to a wider consumer base within both countries, and further measures could be adopted to enhance the use of cashless transactions through the Qris system, fostering increased collaboration and economic activity between Indonesia and Thailand.

Taking cues from Thailand’s recent post-election stage, Rasjid believes there are lessons to be learnt for the imminent election in Indonesia. Amidst competition and rivalry, collaboration is key, and these democratic processes underscore the essential shared goal of national welfare. As a united force, confrontation can be substituted by synergy in striving towards greater accomplishments for the nation.

This concept of “competing to collaborate” should be an overarching theme of the upcoming elections in Indonesia.