Minister Of Energy And Mineral Resources Arifin Tasrif Reveals The Cause Of Low Absorption Of Electric Motor Conversion

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin revealed the cause of the low absorption of incentives for the conversion of electric motors promoted by his ministry.

Just so you know, the Ministry of Energy and Mineral Resources has set a conversion target of 50,000 units by 2023, but has not yet reached the target, aka still below 1000 units. Meanwhile, for 2024, the Ministry of Energy and Mineral Resources is targeting to convert 150,000 units of electric motors.

Arifin said that there were actually quite a lot of interested people who registered themselves for this program, but there were still many who were constrained when registering a Vehicle Registration Certificate (STNK).

"There are a lot of registered ones, it turns out that many STNKs are fake. So they are afraid to register," Arifin told the media crew when met at the General Directorate General of Oil and Gas (Migas) Building, Friday, February 16.

To pursue the target that has been set, Arifin said that his party is trying to prevent motors that have problems with STNK so that they can be converted.

The reason is, Arifin assessed that this is one way so that the number of electric motor conversions can increase significantly and the electric vehicle ecosystem is growing.

"For example, an electric car is a progressive tax that is lost. How can this be removed in the past? Because it was blocked," continued Arifin.

Arifin said that his party will continue to encourage the conversion of electric motorcycles because the industry for new electric motors has not yet developed and people's purchasing power is still low.

"Yes, because what more events do we want to use? The industry is still not. The only way, yes, we are trying to encourage this old motorbike to be converted," explained Arifin.

Previously, Arifin said that the low number of conversions of electric motors was one of the causes of the realization of the budget of the Ministry of Energy and Mineral Resources had not yet reached the target.

It is known that the realization of the Ministry of Energy and Mineral Resources' budget in 2023 only reached 89.96 of the total budget set at IDR 6.87 trillion. This number has not yet reached the prognosis of 90.92 percent.

For information, the Directorate General of New Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources noted that until December 31, 2023, only 181 motorcycles had converted from fuel oil to electricity.

Acting Director General of EBTKE, Jisman P Hutajulu detailed, of the 181 applications, 145 of them have received government assistance with a total of Rp1.4 billion and 36 others are still in the process of roadworthy testing and applying for a Type Test Certificate (SUT) and a Type Test Registration Certificate (SRUT) in 2024 to ensure that technical requirements and motor vehicle roadworthiness are met.