Jakarta-based electric vehicle (EV) manufacturer Maka Motors has announced a significant reduction in its workforce, laying off 40% of its employees. The company attributes this drastic measure to a pause in government subsidies for EVs in Indonesia, which has severely impacted demand and financial stability.
The subsidy pause, part of a broader reassessment of EV incentives by the Indonesian government, has led to a sharp decline in vehicle financing approvals. This has created a ripple effect, with Maka Motors struggling to maintain its operational capacity amidst falling sales and tightened budgets.
In a statement, the company expressed regret over the layoffs, emphasizing that the decision was made to ensure long-term sustainability. CEO Raditya Wibowo highlighted the critical role of government support in the EV sector, noting that without subsidies, the affordability of electric vehicles for consumers is significantly reduced.
The reduction in workforce is part of a broader trend in the EV industry across the region, where companies are grappling with similar challenges due to fluctuating policy support. Analysts suggest that the Indonesian government may need to reconsider its stance on subsidies to bolster the EV market growth and prevent further job losses.
Maka Motors, once seen as a rising star in Indonesia’s green technology sector, now faces an uncertain future. The company has called for a policy reversal or alternative support mechanisms to help stabilize the industry and protect local jobs.
As the situation unfolds, industry stakeholders are watching closely, hoping for a resolution that balances fiscal responsibility with the push for sustainable transportation. For now, the layoffs at Maka Motors serve as a stark reminder of the fragility of emerging industries in the face of policy shifts.
Maria Lourdes
