automotive

The Role Of The Funding Institution Is Crucial For The Success Of The Electric Vehicle Ecosystem In Indonesia

Collaboration across all sectors, especially financial institutions and national banks, can accelerate the electric vehicle ecosystem in Indonesia. Energy and Electric Vehicle Observer Eko Adji Buwono believes that financial institutions and banks play a significant role in the growth of electric vehicles in Indonesia.

Eko explains that the majority of vehicle financing schemes are still in the form of light credits from banks. This is reflected in almost 100% of current conventional vehicle owners accessing motorcycles and cars using bank credit.

"This makes financing institutions have different approaches. Currently, financing, especially for electric vehicles, follows the development of the number of electric vehicles in the market," says Eko.

Eko also notes that many banks currently offer financing packages for electric vehicles, both motorcycles and cars. "They also offer various interest rate discounts and commission cuts," adds Eko.

This is also supported by government policies that provide incentives and ease of access to electric vehicles for the public.

The Financial Services Authority (OJK) reports that electric vehicle financing continues to grow. As of April 2024, the distribution of electric vehicle financing by multifinance companies amounted to Rp 4.39 trillion.

Executive Head of Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Institutions OJK Agusman stated that the total financing for electric vehicles (EVs) is only about 1% of the total financing distribution.

"The distribution of financing for EVs amounted to Rp 4.39 trillion or about 1% of the total financing distribution," he said in an official statement.Overall, the multifinance industry recorded a total financing of Rp 486.35 trillion until April 2024. This amount grew by 10.82 percent annually compared to the same period last year.

Tag: Eko Adji Buwono Electric Vehicle Ecosystem Indonesia