Electric Motor Subsidy Lacks Interest, Erick Thohir Reveals The Cause

JAKARTA - Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Ad Interim, Erick Thohir revealed the cause of slow absorption of electric motor subsidies.

One of them is because the battery stock for two-wheeled vehicles is limited.

Moreover, Erick said, the global electric motorcycle market is not as big as in Indonesian territory.

On the other hand, the supply of batteries for electric motors is much smaller when compared to electric cars.

"This means that when it comes to motorcycle batteries themselves, the population is even smaller than for cars," he said at the Ministry of SOEs Building, Jakarta, written Friday, November 24.

Therefore, continued Erick, the government is very open if there are parties interested in investing in the electric motorcycle battery sector in Indonesia.

According to Erick, the entry of investment in the sector can meet the need for batteries for conventional motor conversion to electric motors.

"That's why we invite anyone who wants to invest in our motorcycle battery to be very open," he said.

Erick also said that the government had prepared derivative regulations from Presidential Regulation (Perpres) Number 55 of 2019 concerning the acceleration of the battery-based electric motor vehicle program.

Furthermore, Erick said that the derivative regulations are expected to boost the conversion of conventional motorcycles to electric motors.

This regulation will also later contain provisions related to batteries that will be used in the electric motor conversion program.

"That's why later in the Presidential Regulation there will be a derivative solution for how to change from the previous motorbike to an electric motorcycle, what kind of battery. But you don't have your own battery yet," he explained.

Electric Motor Subsidy Lacks Interest

The new electric motorcycle subsidy program of IDR 7 million is still empty of enthusiasts. PT Surveyor Indonesia (PTSI) noted that around 7,000 to 8,000 people had registered from the target of 200,000 units in 2023.

For your information, Surveyor Indonesia acts as the manager of the Two-wheeled or Sisapira Electric Motor Vehicle Purchase Information System.

PTSI Commercial Director Saifuddin Wijaya said the government had provided incentives, but it did not have a significant impact on purchases.

"From the 200.000 target, so it is indeed further. It is still far from the target (2023)," he said at the Graha Surveyor Indonesia, Jakarta, Tuesday, November 14.

Regarding the target of distributing 200,000 units, Saifuddin hopes that by the end of 2023 the spike will be quite significant. So, he continued, they could pursue more distribution targets.

The target is 200,000. It looks like yes, we don't know, hopefully in December there will be 'boom' of their wishes. But again we leave it to the public, how about their interest in electric motorcycles," he said.