58 Percent of Young Entrepreneurs in Indonesia Have Started Environmentally Friendly Businesses

Secretary of the Deputy for SMEs at the Coordinating Ministry for SMEs, Koko Haryono. Photo: Doc. Kemenkop UKM

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) said that the current trend of young entrepreneurs is starting to shift to environmentally friendly businesses, including the electric motor vehicle industry.

"As many as 84 percent of young entrepreneurs are interested in environmentally friendly businesses, then 58 percent start businesses to improve the environment, and around 56 percent produce environmentally friendly clothing, low carbon products and waste reduction systems," said Deputy Secretary for UKM at the Ministry of Cooperatives and Small and Medium Enterprises Koko Haryono in Inbuyer EV Expo 2023 event at the Smesco Building, Jakarta, Wednesday, November 29.

Koko said that this trend could be utilized by MSME players to get involved in the environmentally friendly business ecosystem, one of which is in the development of electric vehicles (EV). The opportunities in question include opening a dealership, repair shop, battery charging place, and others.

He emphasized that the policy for developing the battery-based electric motor vehicle industry and ecosystem (KBLBB) is a strategic program. Not only does it encourage the development of domestic technology and industry, but it is also closely related to the new paradigm of green and sustainable economic development.

"The government continues to encourage the acceleration of EV development in Indonesia. A number of efforts have also been made, including through preparing a road map for EV development, providing various incentives, and developing the EV ecosystem in Indonesia," he said.

Based on reports from the International Renewable Energy Agency (IRENA) and the Ministry of Energy and Mineral Resources (ESDM), the number of electric vehicles is projected to reach 20 million units in 2030 and is expected to continue to increase until 2050.

Meanwhile, General Chair of the Indonesian Electric Motorcycle Industry Association (Aismoli) Budi Setiyadi said, so far there are 52 motorbike brands based on Ministry of Transportation data, and as many as 42 brands are currently applying. Meanwhile, there are 38 brands that are members of Aismoli.

Then, based on the information it received, the Ministry of Energy and Mineral Resources is working on a revision of the regulations of the Minister of Energy and Mineral Resources Regulation Number 3 of 2023 concerning General Guidelines for Government Assistance in the Motorcycle Conversion Program, with a combustion motorbike to become an Electric Motorbike, as well as the Decree of the Minister of Energy and Mineral Resources concerning Technical Instructions for the Implementation of Government Assistance in Electric Motorcycle Conversion Program.

It is known that initially the vehicle incentive for electric motorbikes was only IDR 7 million, and is planned to increase to IDR 10 million. “

"We don't know exactly when. The hope is that it will be held even bigger, the plan is for next year by collaborating with partners," he said.