Central Government Finalization Of Electric Vehicle Incentive Rules, Celiom Celios: It Is Feared That There Will Be More Congestion

Illustration. (Photo: Doc. Antara)

JAKARTA - The government is finalizing the rules for providing incentives for the purchase of motorbikes or electric vehicles, next year. According to the plan, the incentives will be included in the 2023 state budget (APBN).

The rules for providing electric vehicle incentives are considered less profitable. Because it is feared that it will have an unfavorable impact, one of which is increasing congestion in the country.

This was conveyed by economist and Director of the Center of Economic and Law Studies (Celios), Bhima Yudhistira, to VOI, on Tuesday, December 20.

"If electric cars are subsidized, they are worried about adding to traffic jams, especially in big cities," he said.

According to Bhima, the government should only provide incentives for old cars, because they can reduce the burden on the state budget in 2023 in facing the threat of a global recession.

"Actually, the subsidy for electric cars is not urgent, especially when the hybrid car using fuel is still subsidized. It is better if (the government provides) subsidies in the form of conversions from old cars to electric vehicles or full EVs. The government will cooperate with conversion workshops," he explained.

Bhima also appealed to the government to make the best decisions regarding the incentive rules for electric vehicles that are being finalized.

"(The incentive rules for electric vehicles) are not yet needed. The finance ministry should have clear indicators for who the APBN subsidies are distributed, considering the fiscal space. (Incentive rules) still need to be reviewed, rather than being implemented quickly, but there will be many problems later," he concluded.

Previously, the Government was finalizing incentive rules for the purchase of cars or electric motorbikes. Later, these incentives will be given to every purchase of electric vehicles, both cars and motorbikes, which are produced by companies that have factories in Indonesia.

The incentive is expected to provide various benefits for the development of the electric vehicle industry. According to the plan, the incentives to be given for the purchase of electric cars are around Rp. 80 million, and for hybrid-based electric cars around Rp. 40 million.

Meanwhile, for the type of two-wheeled vehicle, the government will provide incentives of around Rp. 8 million. Then, the conversion motorbike into an electric motorcycle gets an incentive of around Rp. 5 million.