Regarding The Leak Of Electric Vehicle Subsidies, Minister Of Energy And Mineral Resources: Prioritize Ex-Motorcycles

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif opened his voice regarding the amount of subsidies in electric motorized vehicles. Arifin revealed that currently the government has not determined the nominal amount of subsidies that will be applied but he ensures that it will prioritize used vehicles for conversion to electric motors.

"That was discussed again for Rp. 80 million and Rp. 8 million. If we want to prioritize used motorbikes first," he said when met at the Ministry of Energy and Mineral Resources Building, Friday, December 16.

Previously, it was reported by the Minister of Industry Agus Gumiwang Kartasasmita that the government would provide incentives of Rp. 80 million for the purchase of electric cars and Rp. 40 million for the purchase of hybrid-based electric cars. Meanwhile, incentives for the purchase of electric motorcycles are set at Rp. 8 million, and incentives for converting motorcycles into electric motorcycles are Rp. 5 million.

The Minister of Energy and Mineral Resources stated that he objected to the amount of conversion motorcycle subsidies which were set at only Rp. 5 million. According to him, this makes people not interested in joining this program.

"Don't say IDR 5 million. It must be bigger than a new motorbike. If that's not the case, this program is not attractive, even a new motorbike that is subsidized," continued Arifin.

For this reason, Arifin said there needed to be a new agreement regarding the nominal amount of subsidies given because if it was too small it would make it difficult for small people who have old motorized vehicles and find it difficult to buy new vehicles.

"The end needs to be agreed upon again because there are small people who have old motorbikes and if they buy new ones, they are certainly expensive. The potential is also large and will immediately have an impact on reducing the use of fuel and emissions," he concluded.