Ministry Of Industry Values Increased Purchasing Power To Help Achieve KBLBB 2025 Targets

Director General of Metal, Machinery, Transportation Equipment and Electronics Industry of the Ministry of Industry Putu Juli Ardika. (Photo: Theresia Agatha/VOI)

The Ministry of Industry assesses that increasing people's purchasing power can help achieve the production target of 400,000 Battery-Based Electric Motor Vehicles (KBLBB) in Indonesia by 2025.

"So, the problem is indeed in people's purchasing power. Hopefully in the future we will be able to encourage how electric-based vehicles can increase," said Director General of Metal, Machinery, Transportation Equipment and Electronics Industry of the Ministry of Industry (Kemenperin) Putu Juli Ardika as reported by ANTARA, Monday, July 22.

Until July 2024, Putu said the distribution of KBLBB in the country reached 159 thousand units, while the government has a production target of 400 thousand four-wheeled KBLBBB by 2025.

Increasing the composition of the industry with an economy, according to him, is one of the efforts to increase people's purchasing power against KBLBB, which is still being sold at relatively high prices.

Currently, related industrial companies continue to strive to survive by reducing margins, the difference between production costs and product selling prices, in order to help people's purchasing power.

Some of the raw materials and KBLBB components that are still imported at high prices, Putu continued, are also a challenge for industry players in reducing product selling prices.

"Because we have a lot of imported raw materials and auxiliary materials, even the import price is very high. To still be able to serve the community, the margin is lowered to encourage people's purchasing power," said Putu.

The KBLBB production target is set in order to support the achievement of the government's target to reduce greenhouse gas (GHG) emissions by 29 percent by 2030.

In addition, KBLBB production also makes Indonesia one of the main players in the world's automotive manufacturers.

"Regarding the target of 400,000 electric cars in 2025, it is quite challenging if we look at the development that has so far, hopefully in this year and a half we can improve," said Putu.