Quota Sold Out, Electric Motor Subsidy Program Will Continue Next Year?

Illustration (Photo: Doc. ANTARA)

JAKARTA - The electric motorcycle subsidy quota has run out this year.

Based on Sisapira data, from January to September 2024, subsidies have been distributed for 30,607 vehicles, bringing the total electric motors distributed until 2024 to 72,389 units.

The subsidy program, which is regulated in the Minister of Industry Regulation (Permenperin) Number 6 of 2023, provides incentives of IDR 7 million per unit of an electric motorcycle.

Initially, the subsidy quota was targeted to reach 600,000 units this year, but the high demand made the subsidy budget run out faster.

So, will the government continue to provide the subsidy next year?

Secretary General of the Ministry of Industry (Kemenperin) Eko SA Cahyanto said that the government is currently preparing an incentive scheme for purchasing electric motorcycles for 2025.

Eko said, there is a possibility that the incentive scheme for the purchase of electric motorcycles will change. However, the details of the changes in question cannot be conveyed.

"It is possible that the pattern is different, but we are still compiling it," Eko told reporters at Cibis Park, Simatupang, South Jakarta, quoted Thursday, December 19.

According to Eko, the Ministry of Industry is also evaluating the policy of purchasing electric motorcycles that will take effect in 2023 and 2024.

In the last two years, the purchase of an electric motorbike has received a subsidy of Rp. 7 million, provided that the motorbike is registered in the information system for the provision of assistance in the purchase of two-wheeled electric vehicles (Sisapira).

Later, the results of the evaluation will be used to formulate a special incentive policy for the purchase of electric motorcycles next year.

"We are currently calculating, evaluating the program for the past two years, to prepare special incentives for electric two-wheeled motorized vehicles next year," he said.

For information, the government has issued three policies related to battery-based electric vehicle incentives, including cutting value added tax (VAT) for cars and buses regulated in PMK Number 38 of 2023 and extended by PMK Number 8 of 2024.

For vehicles with Domestic Content Level (TKDN) above 40 percent, VAT DTP is set at 1 percent, while buses with TKDN 20-40 percent are subject to VAT cuts to 6 percent.

Meanwhile, electric two-wheeled vehicles, subsidies of IDR 7 million will be given per purchase, according to Permenperin Number 21 of 2023.

In addition, the subsidy for two-wheel conversion was increased from IDR 7 million to IDR 10 million through the Minister of Energy and Mineral Resources Number 39.K/EK.07/DJE/2023.