Ministry Of Energy And Mineral Resources Proposes Addition Of Electric Motor Conversion Incentives

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif proposed adding incentives for the conversion of electric motors. This is intended to increase public interest in switching to leaving a burning motorbike into an electric motorcycle.

"We are proposing to add more incentives," said Arifin when met at the Office of the Ministry of Energy and Mineral Resources, Jakarta, Friday, September 15.

Arifin said that the number of registrants who wanted to convert electric motorcycles was almost 6000 people, still far from the government's target of setting 50,000 conversions of electric motorcycles in 2023. According to him, the conversion of electric motorcycles can create new jobs for workshop owners and develop the MSME industry.

"If the conversion of roads, apart from being able to create new jobs, there is a SME industry that can indeed develop. There is another demand for crude imports," said Arifin.

Although Demiikian Arifin did not specify the additional amount of incentives proposed to the Ministry of Finance.

Previously, the Director of Conservation of the Ministry of Energy and Mineral Resources, Gigih Udi Atmo, revealed that the public's low interest in the conversion of electric motorcycles was partly due to the lack of socialization, high prices, and public concerns regarding the electric motor component.

The government itself, continued Gigih, has also made various efforts to attract public interest in participating in the conversion of electric motorcycles, such as by providing subsidy assistance of Rp. 7 million in the form of discounted prices when converting electric motorcycles to reduce investment costs for the conversion of electric motors, where the highest cost of converting electric motors is Rp. 17 million.

In terms of full-sale services, Gigih said that electric motorcycle batteries are one of the main components that is feared by the public to be damaged quickly, will receive a warranty of up to three years in the conversion program of electric motors, while the guarantees offered for the gross direct current (BLDC) or motor dynamo for 1 year.

"So people don't need to worry if suddenly in a few months there are problems with batteries, just take them to the workshop and later the workshop will replace the battery," Gigih explained.