The Ministry Of Industry Leaks Electric Motor Incentives Will Be Continued This Year, But Not A Subsidy Scheme

Illustration (Photo: Doc. ANTARA)

JAKARTA - The Ministry of Industry (Kemenperin) plans to resume the incentive program for the purchase of electric motorcycles.

Although, the incentive scheme for this year is expected to be different from the previous year.

This was conveyed by the Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry, Setia Diarta.

"Even if there are incentives, it might not be like last year or 2023. Maybe this year the scheme will be different, not subsidies anymore," said Setia on the agenda titled the Prospects of the 2025 Automotive Industry and Incentive Opportunities from the Government at the Ministry of Industry Building, Jakarta, Tuesday, January 14.

According to Setia, the Ministry of Industry proposes incentives for electric motors to be in the form of Government Borne Value Added Tax (PPN DTP). Currently, the Ministry of Industry is submitting the scheme.

"We propose through incentives, maybe we have incentives through VAT DTP. We are in the process of submitting," he added.

Previously, the incentives for electric motors for 2024 had run out with a quota of 50,000 units. Incentives are given in the form of subsidies or assistance provided by the government.

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 by 2024, but the high demand made the subsidy budget run out faster.