Electric Motor Subsidy Expanded, Ministry Of Finance Affirms The Budget Already Exists

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) stated that the expansion of the electric motor subsidy of IDR 7 million per unit starting this month has been supported by the availability of budget allocations in the APBN. This was conveyed by the Director General of Budget of the Ministry of Finance Isa Rachmatarwata when met in Jakarta today.

"The budget is already there, it has been prepared before that (before the expansion of the provision of subsidies)," he said on Tuesday, August 30.

According to Isa, fiscal instruments are always ready to support the government's strategic programs that are oriented towards improving national economic performance. This is included in the community's opportunity to obtain financial support from the government in buying electric motorcycles.

"So now the requirements are made easier with a fixed budget," said Isa.

Sri Mulyani's subordinate added that the big goal of providing subsidies for electric motors is to encourage the creation of a better business climate in Indonesia. This is because the initiative is considered to have a multiplier effect on the domestic economy.

"The goal is from the start to build an ecosystem in the use of electrical energy, so it's not to help the poor. This includes us supporting downstreaming. So from natural resources (SDA) to becoming batteries," he said.

"In addition, we also want to create an environmentally friendly use of energy," continued Isa.

As previously reported, the expansion of the subsidy for the purchase of electric motors is contained in the Minister of Industry Regulation (Permenperin) Number 21 of 2023 concerning Amendments to Permenperin Number 6 of 2023 concerning Guidelines for Providing Government Assistance for the Purchase of Two-wheeled Battery Battery-Based Electric Motor Vehicles. The regulation itself was launched by the Minister of Industry Agus Gumiwang Kartasasmita this month.

VOI noted that this year the government allocated a total APBN fund of IDR 1.75 trillion for the electric motor program. The funds include a subsidy of IDR 7 million for the purchase of a new electric motorcycle with a quota of 200,000 units, and a conversion program of conventional motors to electric motors of 50,000 units.

To note, this program was originally intended for micro, small and medium enterprises (MSMEs) on March 20, 2023. However, now this opportunity is extended to the public with the requirement that 1 KTP (NIK) can only buy one subsidized electric motor.