The Government Signals Electric Vehicle Incentives To Be Continued Next Year, The Value Is Greater?

JAKARTA - Deputy for Infrastructure and Transportation Coordination of the Coordinating Ministry for Maritime Affairs and Investment, Rachmat Kaimuddin, revealed that the government will continue incentives for electric vehicles next year.

Furthermore, Rachmat said, his party is also reviewing to increase the amount of additional incentives for the purchase of electric vehicles (EVs), both motorbikes and electric cars.

"We are still evaluating. Hopefully we can still (incentives for electric vehicles to rise), it's like people can come at the minimum cost," said Rachmat on the sidelines of the Decarbonization of the Transportation Sector at the Kempinski Hotel Indonesia, Jakarta, Friday, November 10.

Rachmat said the policy was tried to be initiated so that the purchase of electric motorcycles and new electric cars, or conversions from vehicles with fossil fuels to EVs could be boosted.

Furthermore, Rachmat said that the government itself has actually provided incentives this year, but public enthusiasm for the use of electric vehicles is not yet high.

"We're trying (to go up), we're hanging out. So it hasn't been decided yet, but it's something we're still considering so that pick up (up)," he said.

Rachmat said the form of providing incentives in 2024 would not be much different from what was done this year. For example, the incentive is IDR 7 million for the purchase of a new electric motorcycle with a domestic content level (TKDN) of 40 percent. Meanwhile, for electric cars, VAT cuts from 11 percent to only 1 percent.

"We're looking at what else we can do, because this conversion is also interesting, and the problem may be a little different from the new bike," he explained.

Even so, said Rachmat, the government will focus more on the conversion program. The goal is that the use of electric vehicles can be more massive in the country.

What we need to pay attention to is the conversion. Not yet, but the conversion is because the conversion value itself is quite large, still a bit high. So if it is still supported IDR 7 million people may still think, "concluded Rachmat.

Electric Motor Conversion Incentives Increase To IDR 10 Million

Separately, the Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, confirmed the increase in incentives for electric motors.

However, this increase only applies to converts from fossil fuels to EVs.

Previously, the incentive was given in the amount of Rp. 7 million, then increased to Rp. 10 million.

"Rp10 million was decided for the conversion," said Arifin at the office of the Ministry of Energy and Mineral Resources, Jakarta.

In fact, Arifin said, currently the conversion program for motorcycles fueled by oil to electric motorcycles is already running.

"It's been running from now on," said Arifin.

Arifin also hopes that people who own oil-fueled motorcycles will participate in the conversion.

"You're welcome to the conversion," said Arifin.