JAKARTA: Indonesia relaxed the loan rules for the purchase of electric vehicles (VE) and on business loans related to their manufacture in order to stimulate investment in the sector, financial services authority (OJK) said on Friday.
In a statement, OJK said it has relaxed the rules on credit scores and risk calculations for loans to buyers of electric vehicles as well as for industries that make components and batteries.
He also said loans related to infrastructure development, such as charging stations, could be exempt from limits set by OJK.
The move follows 2019 government regulations aimed at accelerating the development of domestic electric vehicle industries, he said.
Indonesia halted exports of untreated nickel ore this year to ensure its nickel supply will be processed nationally, including for battery chemical plants that are currently under construction.
The central bank also removed down payment requirements for loans for the purchase of environmentally friendly vehicles for lenders with low levels of non-performance ratios at its latest policy meeting in an effort to boost the consumption.
Read also: Government to focus on Indian cos for electric bus tender: Prakash Javadekar