Minister Of Industry: There Is An OPPORTUNITY To Give Electric Car Incentives A Price Below Rp800 Million

Minister of Industry Agus Gumiwang Kartasasmita. (Photo: Doc. Antara)

JAKARTA - The government has not officially decided the regulation on the subsidy of electric vehicles until now.

The government is still discussing the incentive rules by considering a number of aspects.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said there are a number of possible formulations related to the government's plan to provide subsidies for electric vehicles in Indonesia.

One possibility is that the government will provide incentives for electric cars at a price below Rp800 million.

the possibility of electric cars that will receive subsidies at a price below Rp800 million.

According to Agus, this possibility is to answer questions from economists who think that subsidies for electric vehicles will only target the upper middle class.

"For example, there is a question, this will subsidize the rich, later we can determine how much electric cars are priced for which we provide incentives," Agus was quoted as saying, Thursday, December 29.

"For example, we could give that incentive, which costs under 800 million," he continued.

Meanwhile, the electricity vehicle subsidy plan is a serious step by the government to encourage the acceleration of the development of electricity-based industries in Indonesia.

However, Agus said, the government has not yet decided on the start of the subsidy, because it is still finalizing to finalize the policy.

"Of course the government will also consult with the DPR, because the government is still finalizing it, of course we can't officially convey it. If it's related to the budget, we have to discuss it with the DPR, the DPR must agree," he said.

Because the formulation related to the electric vehicle subsidy is not final, the Minister of Industry said there are a number of formula options that can be determined.

In addition to the possibility of electric cars subsidized below Rp800 million, another option is to pay attention to a number of determining criteria, such as TKDN (Domestic Component Level) or emissions.

"The formulation is still not final, we can price an 800 (million) car, it could be, or we could determine the criteria, related to TKDN, related to technicians, or it could all be used as a formulation. So, this business is not a simple thing, but in principle the government strongly supports the development of the battery or electric-based automotive industry.