32 Regulation Number 48/PMK.010/2020 reduces or eliminates luxury sales tax (PPnBM) for EV purchases, making electric vehicles more price competitive. These policies demonstrate the Indonesian government’s commitment to fostering a transition to clean energy and environmentally friendly technology by increasing the use of electric vehicles. Investment-wise, Indonesia has signed MoUs with multinational EV industry players. For instance, the South Korean based Hyundai Motor Company signed an investment MoU with the Government of Indonesia in November 2019 and began construction of the factory in December 2019. The factory was completed in December 2021 with an investment of approximately 1.55 billion US dollars until 2030, including product development and operational costs (Gabungan Industri Kendaraan Bermotor Indonesia, 2022). The Indonesian government has also received an investment from the Vietnamese electric car manufacturer, VinFast, to build an electric car factory in Indonesia with an investment value of US$1.2 billion or IDR 18.6 trillion. The factory is targeted to start production in 2026 (Tim, 2024). Lastly, Indonesia will also be the first country in Southeast Asia to produce electric vehicle battery cells. PT Hyundai LG Indonesia (HLI) Green Power will build the first electric car battery factory in Indonesia with a capacity of 10 Giga Watts (GW). This factory will attract an investment of USD 1.1 billion and will have a production capacity of 10 GW, consisting of 32.6 million battery cells capable of producing approximately 150,000 electric vehicles. The factory is targeted to start production in April-May 2024 (Muliawati, 2024). This allows the EV ecosystem to grow and prosper, cementing EV existence in the Indonesian market for years to come. Chapter 5 5.1 Conclusion From the research conducted, it can be concluded that Electric Vehicles could have a great potential in Indonesia. Growing environmental consciousness and the challenges of rising gasoline prices are shaping consumer opinions of electric cars (EVs) in Indonesia. A growing number of consumers are aiming to lower their carbon footprint by considering electric vehicles (EVs) as a feasible alternative as knowledge of climate change and the environmental impact of traditional 33 internal combustion engine vehicles (ICEVs) develops.