Ministry Of Finance: Electric Motor Subsidy Budget Of IDR 1.75 Trillion For 250,000 Units

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) stated that the value of the assistance for the electric motorcycle program which will be rolled out in March reached Rp1.75 trillion.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said that the funds from the APBN were distributed to 200,000 new electric motors sold to the public and assistance for the conversion of conventional motorbikes to electric motorcycles was 50,000 units.

Meanwhile, the value of subsidies provided by the government is IDR 7 million each.

"The number is 250,000 units. So, if multiplied by Rp. 7 million to Rp. 1.75 trillion," he said in Jakarta when answering reporters' questions on Monday, March 6.

According to Febrio, this effort is the government's initiative to accelerate economic transformation towards the creation of the ideals of a green economy.

"This transformation is expected to produce economic activity with high added value," he said.

In addition, the distribution of electricity motor subsidy assistance is intended to expand job opportunities in Indonesia.

"At the same time it has an impact on energy subsidies and also emission reductions," he asserted.

On the same occasion, Minister of Industry (Menperin) Agus Gumiwang Kartasasmita explained that people can only buy subsidized electric motorcycles once. This is based on the participation of the requirements for the Population Identification Number (NIK).

"So we really make sure that those who receive assistance are those who are entitled. So we can't spend twice, one person who is the same as the same NIK cannot do it twice," he said.

For information, the provision of assistance of Rp. 7 million per unit is expected to accelerate the achievement of the target of 10 percent of electric vehicles by 2024. If this is achieved, the electric vehicle ecosystem in Indonesia can continue to be sustainable.