The Purpose Of The Subsidy Of Electric Vehicles And Concretized Steps Taken By The Government

Illustration of electric cars (doc. ANTARA)

YOGYAKARTA The purpose of the electric vehicle subsidy launched by the Government is in the public spotlight. Subsidies will be provided in the form of incentives for car buyers or electric motorcycles.

It should be noted that subsidies will only be given to vehicle products whose factories are in the country. This means that the Government will not receive subsidies for buyers who buy imported electric vehicles. This is as stated by the Minister of Industry, Agus Gumiwang Kartasasmita.

The Minister of Industry explained that one of the objectives of subsidies for electric vehicles is to accelerate the realization of investment in the electric vehicle industry in the country.

"With the incentives for electric cars, we will force world manufacturers to accelerate the realization of investment in electric vehicles in Indonesia," he said in a video, quoted Monday, December 19.

As mentioned earlier, the Government does not provide subsidies to all types of electric vehicles. There are several criteria for electric vehicles that can be subsidized as safe to reveal by the Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu. Then what are the criteria in question?

Subsidies provided for electric vehicles are vehicles produced domestically. This means that vehicles imported from abroad will not receive subsidies from the government.

TKDN or the Domestic Component Level, namely the large number of domestic components, in this case is related to electric vehicles. The government will provide subsidies for electric vehicles that meet TKDN in accordance with government regulations.

"There is a roadmap, for example, what is the percentage of the first year (TKDN), for example, it must reach 60 percent to 70 percent to get its subsidies. We will do this in stages," said Febrio when met by reporters at the Parliament Complex, Thursday 15 December.

Electric vehicle manufacturers must also meet the investment value in accordance with the provisions of the Indonesian Government. Regarding the amount of investment value, the Government is still working with interested ministries, including the Ministry of Industry.

"We have prepared this with the Ministry of Industry. The Ministry of Industry, which has a program, will see which cars have entered as investors, built them in a few years. In the first year, how many units will they produce, in the second year how many units will they be," explained Febrio.

Until this article was written, the Government had not officially announced the amount of subsidies to be given. However, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif had provided information about the leakage of the electric vehicle subsidy.

He said that the Government would prioritize the conversion of used oil-fueled vehicles to electric vehicles.

"That was discussed again for Rp. 80 million and Rp. 8 million. If we want to prioritize used motorbikes first," he said at the Ministry of Energy and Mineral Resources Building, Friday, December 16.

Meanwhile, the Minister of Industry, Agus Gumiwang Kartasasmita, also provided information on the amount of subsidies. He said that the incentive to be given for the purchase of electric cars was IDR 80 million, while the hybrid-based electric car incentive was IDR 40 million.

The subsidy for the purchase of electric motorcycles is set at IDR 8 million, while the incentive for converting electric motorcycles is IDR 5 million. However, the Minister of Energy and Mineral Resources objected to the proposed incentive for converting electric motorcycles.

"Don't say IDR 5 million. It must be bigger than a new motorbike. If that's not the case, this program is not attractive, even a new motorbike that is subsidized," said Arifin.

That's information related to the purpose of subsidies for electric vehicles. To get other interesting information, visit VOI.ID.