Electric Motorbike Subsidy IDR 7 Million To Be Effective From March 2023, Minister Of Energy and Mineral Resources: First 50,000 Units This Year

JAKARTA - The government will apply subsidies for electric vehicles starting in March 2023. Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that the subsidies for cars will not be in the form of money.

"Motorbikes first, four-wheeled vehicles also exist but not in the form of money," said Arifin in Jakarta, Monday, February 20.

Arifin said this was the result of a coordination meeting with the Coordinating Ministry for Maritime Affairs and Investment and the Minister of Transportation today.

For the initial stage, this subsidy will be applied to two-wheeled vehicles or motorcycles.

Meanwhile, the number of subsidies for electric motorbikes will be IDR 7 million, either for conversion motorbikes or for buying new motorbikes.

"To help people get electric motorbikes, either conversions or new ones, at a lower cost," added Arifin.

Arifin said the subsidy aims to reduce fuel imports which are increasing from year to year and reduce vehicle emissions due to fossil fuels.

"If everyone has used electric vehicles, our air will also be clean, it will also reduce carbon emissions. The benefits are not subsidizing those who can afford it and can't afford it," he explained.

For 2023, the government will provide subsidies for the purchase of 50,000 new electric motorbikes or conversions.

"This year, the minimum conversion is 50,000 first. But we are still trying to build workshops. Later we will work with the Minister of Transportation to be able to develop workshops," concluded Arifin.

Regarding the subsidy scheme, Arifin previously said that for the purchase of new motorbikes, it would be provided through the Ministry of Industry, while for convertible vehicles it would be provided through the Ministry of Energy and Mineral Resources.

"Later, the allocation will be given to those who convert in ESDM, if those who are new to the industry, the plan is to do so. Later, the benefits will be long-term, so that's the source," said Arifin.