Realization Of Low Electric Motor Subsidy Last Year, 2024 Quota Cuts To 50,000 Units

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

The Ministry of Industry (Kemenperin) ceiling in the 2024 State Revenue and Expenditure Budget (APBN) reached IDR 3.76 trillion.

The Rp350 billion of which is a budget for the subsidy program or assistance in purchasing electric motorcycles, which this year is targeted to be able to reach 50,000 units.

This target decreased from the 2022 target which reached 200,000 units with a total budget prepared of IDR 1.4 trillion.

Unfortunately, last year the government was judged to have failed completely because the subsidy program for purchasing electric motorcycles only realized 11,532 units with an absorbed budget of Rp80.7 billion.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita revealed, one of the reasons the quota for subsidies for electric motors in 2023 was not fulfilled because the distribution of subsidies had only started in April 2023.

Then, the terms are simplified and only valid in September 2023.

"On September 19, 2023, the government changed the requirements for receiving assistance to purchase Battery-Based Electric Motor Vehicles (KBLBB) into one Identity Card (KTP) per motorbike so that it is easier and more open to all groups. This change in requirements encourages an increase in purchases by 567 percent," said Minister of Industry Agus in a written statement received by VOI, Monday, January 15.

Agus said, one of the reasons for the low absorption of electric motor subsidies is related to the capabilities of the currently produced battery components.

This is because charging, which is considered too long, has made public interest in electric motors low.

Related to this, Agus said, his party would be more active in communicating with electric motorcycle manufacturers to set battery standardization.

According to him, for car and electric motorcycle consumers, one of the important things is batteries.

"So, these components must be able to have a long, long duration and the battery must be easily charged. So, the battery is the key to the success of the car and electric motor programs," he said.

Even so, Agus is optimistic that the target of the electric motor subsidy program in 2024 will be achieved.

"This is in line with the increasing number of products being marketed so that consumers can choose more as needed," he added.