Public Interest In Buying Electric Motors Is Still Low, Moeldoko: Government Evaluates Periodically EV Incentives

Indonesian Volta and MCAS Group lead the acceleration of electric vehicles with Microsoft with Genrative AI. (Doc. ANTARA/HO-Microsoft)

JAKARTA - The government has taken various steps to encourage the adoption of electric vehicles. One of the steps taken is to provide incentives for the purchase of electric motorcycles. However, the level of purchasing power of Indonesians to electric motorcycles is still relatively low.

Based on the latest data according to the Sisapira page (The Two-wheeled Electric Motor Vehicle Purchase Information System) as of June 21, 2023, reported by ANTARA, there were still 199,196 remaining electric motor quotas.

Presidential Chief of Staff (KSP) Moeldoko as well as General Chair of the Indonesian Electric Vehicle Industry Association (Periklindo) ensured that the government periodically evaluates incentive mechanisms or government assistance for electric vehicles (EVs), in response to the low interest in buying electric vehicles.

"We periodically evaluate two government incentives, provide government assistance. One is for motorcycles. The second is for cars," said Moeldoko after a discussion with the Indonesian Chamber of Commerce and Industry (Kadin) and a number of vehicle associations at the Indonesian Chamber of Commerce and Industry, Jakarta, Wednesday.

It is known, the government has set a Government-Borrowed Value Added Tax (PPN DTP) incentive for the purchase of electric cars that have criteria for the Domestic Component Level (TKDN) value of 40 percent with a quota of 35,900 units. Through this incentive, the VAT charged to buyers is only 1 percent.

In addition, government assistance or subsidies for electric motors have also been set in the form of discounted prices of Rp. 7 million for the purchase of an electric motorcycle that has a minimum TKDN of 40 percent with a quota of 200,000 units.

This electric motor subsidy is intended for people who are beneficiaries of people's business credit, productive assistance for micro businesses, wage subsidies, and/or recipients of electricity subsidies up to 900 VA.

"What we really pay attention to is why government assistance requires those four things, how come the absorption is so low. Well, this is what we continue to boost (evaluate), whether this is related to the old restitution and so on," said Moeldoko.

He said his party would also hold a meeting with the Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan on Wednesday to discuss the issue of government assistance for electric vehicles.

"Certainly (the meeting) responded to that earlier, answering why this is. How slow (the absorption) is. There must be an evaluation time. Next, whether a new policy will be issued (still don't know)," he said.

Moeldoko views the low public interest in using electric vehicles because of a number of issues that are still a challenge, including the issue of battery components to the availability of battery charging stations.

Therefore, on Wednesday, his party representing the Indonesian Electric Vehicle Industry Association (Periklindo) also discussed with a number of other associations and Kadin to find solutions to maximize sales of electric vehicles through incentive schemes.

"These issues are still around us. It was our job, earlier with the gathering of associations and Kadin's team in a meeting, this is one method of how we actively provide socialization to the public, to the community," he concluded.