Government Changes Electric Motor Incentive Requirements, Out Rules Next Week

Illustration of an electric motorbike (Photo: dock. Antara)

JAKARTA - The government is currently making revisions to the rules for providing incentives or subsidies for purchasing electric motorbikes. The plan, the regulation will be issued next week.

Deputy for Infrastructure and Transportation Coordination of the Coordinating Ministry for Maritime Affairs and Investment Rachmat Kaimuddin explained that the amount of electric motorcycle incentives set by the government was IDR 7 million per person. Next week, continued Rachmat, the latest regulation is expected to come out.

"Hopefully, God willing, next week there will be revised regulations," he said at the Air Pollution Handling Press Conference, which was broadcast on FMB9 YouTube, in Jakarta, Thursday, August 24.

This latest rule, said Rachmat, allows for everyone as long as they are Indonesian citizens (WNI) have identity cards (KTP) and are 17 years old, they will also be able to get this government assistance.

For your information, this revision of the regulation is carried out to expand the target of recipients of electric motorcycle incentives. With the hope that more people will be interested in changing their motorbikes to electric motorcycles.

Previously, this rule was limited to certain groups only. With this provision, the absorption of this program is still not optimal.

In line with the new rules that will be released, Rachmat said the government also encourages conversion to electric motorcycles. The nominal incentive is also determined at IDR 7 million.

"So there are those who want their motorbikes to be converted, now the program is running, they just need to come to the government repair shop and get Rp7 million for the conversion of electric motorcycles," he explained.

Electric Car Incentives

Not only two-wheeled vehicles, Rachmat said that incentives for electric cars were also changed. Initially, the purchase of electric cars was subject to an 11 percent Value Added Tax (VAT), but was changed to only 1 percent VAT.

"The electric car can get VAT 11 (percent) to 1 (percent) and in the future there will be more new model models. So from that side there are factors that we have prepared," he said.

Rachmat said his party was also pushing for buses. He said, buses are given the same incentive, even looser.

"If TKDN 20 percent gets a 5 percent discount, if the TKDN is already above 40 (percent) it can also get 10 percent for buying buses which of course can be used to build public transport," he said.