Moeldoko Calls Hybrid Car Incentives Hampering BEV Growth

JAKARTA - Chairman of the Indonesian Electric Vehicle Industry Association (Periklindo) as well as Presidential Chief of Staff Moeldoko said that semi-electric car incentives, aka hybrid, could affect the growth of pure electric cars (BEV).

"It is not easy to give permission (incentives to hybrid cars) later for electric cars will not grow well," he said at a press conference closing the 2024 PEVS at JIExpo Kemayoran, Jakarta, Saturday.

Moeldoko said that until now, the policy regarding incentives for cars powered by a combination of electricity and gasoline is still in the study stage.

This was also stated by President Joko Widodo at the 2024 PEVS event recently, which stated that incentives were still being discussed with the Coordinating Minister for Economic Affairs as well as the Minister of Industry.

According to Moeldoko, providing incentives for hybrid cars needs to be studied further, especially regarding its technological facilities to the environment and economy.

Indeed, it is being discussed (the hybrid car incentive policy), that's why yesterday the President said when he was asked to wait. Hybrids also need a deeper study, in certain situations there has been a reduction in gasoline. However, these studies must be even deeper," he said.

Moeldoko argues that hybrid cars cannot be categorized as electric cars, because they still use gasoline.

"As the head of Periclindo, I don't include (hybrid cars into the EV category), EVs are pure, so in my opinion, the hybrid is not in the EV category. But as the Presidential Chief of Staff, just wait," added Moeldoko.

Incentives for hybrid cars since last year have been discussed several times by the President's assistant ranks, including by the Minister of Industry (Menperin) Agus Gumiwang.

This hybrid car incentive will accompany incentives provided by the government for electric cars, electric buses, and electric motors.

This year the government again provides incentives for electric cars, namely the Government-Borrowed Value Added Tax (PPN DTP) of 10 percent specifically for vehicles assembled locally with a Domestic Content Level (TKDN) of at least 40 percent.

Then the government has also provided incentives for imported electric cars (Completely Built Up/CBU) and (Completely Knock Down/CKD) free import duties and PPnBM (Mewah Goods Sales Tax) for investment-committed investors.

Electric motors have also received an incentive of IDR 7 million for the purchase of new units and IDR 10 million for conversion.

Incentives that will have an impact on the price of these products so far have not been enjoyed by hybrid cars and electric trucks, even though sales of hybrid cars experienced a significant increase in 2023 and are predicted to increase this year.