..it is important to support domestic production because Indonesia has the human resources capable of achieving it,Jakarta (ANTARA) – The Indonesian government’s decision to focus electric vehicle (EV) incentives on national brands will stimulate growth in the automotive industry and accelerate the sector’s energy transition, the Institute for Development of Economics and Finance (Indef) stated.Indef Executive Director Esther Sri Astuti described the incentive policy as a positive step toward encouraging the public to adopt environmentally friendly vehicles, stressing that it should be accompanied by supporting measures to maximize its impact.Contacted from Jakarta on Sunday, she observed that Indonesia has made notable progress in nurturing high-quality human resources in the automotive industry, as reflected in EV projects initiated by universities.“Diponegoro University is able to produce EVs, albeit only for limited campus purposes. Therefore, it is important to support domestic production because Indonesia has the human resources capable of achieving it,” she said.Astuti also highlighted the need to attract investment in EV supply chains, particularly battery manufacturing. She said incentives could help draw investment while strengthening Indonesia’s EV battery ecosystem.She further underscored the importance of developing adequate infrastructure, particularly recharging stations, to boost public confidence in adopting EVs and in the sector's long-term prospects.Additionally, the Indef director suggested that the government extend incentives to manufacturers, encouraging the mass production of affordable EVs with high domestic component levels (TKDN).Her remarks followed Industry Minister Agus Gumiwang Kartasasmita’s announcement on July 30 to prioritize national brands in EV incentive allocations.However, the government has yet to clarify the criteria, including whether “national brands” refers strictly to Indonesian-owned firms or also covers foreign manufacturers with high TKDN.Earlier in June, Astuti said incentives covering value-added tax (VAT) and luxury goods sales tax had proven effective in expanding the domestic EV market, citing a 152-percent surge in demand.