The Government Makes Efforts To Subsidy The Convertion Of Fuel Vehicles To Electric

Minister of Transportation Budi Karya Sumadi. (Photo: Doc. Ministry of Transportation)

JAKARTA - In order to accelerate the use of battery-based electric motor vehicles (KBLBB), the Government through the Ministry of Transportation seeks to provide subsidies to the cost of converting oil-fueled motorized vehicles (BBM) to electric vehicles.

As an effort to accelerate, the Ministry of Transportation has issued a number of regulations, the first is for motorcycles through Minister of Transportation Regulation Number 65 of 2020 concerning Motorcycle Conversion by Fuel Motor Mobilization into Battery-Based Electric Motorcycles.

Then, for vehicles other than motorbikes such as cars, buses, and other vehicles driven by mechanical equipment in the form of machinery in the form of vehicles other than vehicles running on the rail, the Ministry of Transportation has issued Minister of Transportation Regulation No. 15 of 2022 concerning Motorized Vehicle Conversion other than Motorcycles by Fueling Motorcycles into Battery-Based Electric Motorized Vehicles.

"We, together with Ministries/Institutions and related elements, are discussing trying to make subsidies to convert fuel vehicles to electricity. Especially for motorcycles," said Transportation Minister Budi Karya Sumadi in a statement to the media, Tuesday, September 20.

Budi said the conversion subsidy could be carried out from the transfer of the fuel subsidy budget allocation.

"Local governments can also initiate to divert underproductive budgets, so that they are diverted to provide subsidies for conversion fees to electric vehicles," he continued.

He added that currently the cost of converting fuel-to-electric motorcycles is still quite high, which is around Rp. 15 million. However, if demand increases, and workshops capable of serving conversions are increasing, it is hoped that the price will be more competitive.

Another effort that has been made by the Ministry of Transportation to accelerate the presence of KBLBB en masse in Indonesia is by applying cheaper types of test costs for electric vehicles compared to conventional vehicles (BBM). For example, for the cost of testing the type of electric motorcycle of R 4.5 million, compared to conventional motorcycles of Rp9.5 million.

In the future, we will try to make free type tests. Then, we also try to do type tests not only by the Ministry of Transportation. But it can be done in a certified public workshop. Currently it is running to educate certain workshops to carry out type tests," said the Minister of Transportation.

On the same occasion, Minister of Energy and Mineral Resources Arifin Tasrif said that his party is intensifying the program to convert fuel motorcycles to electricity, in the form of making main components to the form of products into motorcycles. In 2022, pilot projects are carried out with a target of 120 electric motorcycles and will become more massive in 2023. In addition, his party is also conducting coaching for workshop business actors, so that more workshops can convert according to applicable regulations.

According to him, a number of benefits obtained from the use of KBLBB include: in a more cost-effective, more environmentally friendly, and reducing dependence on fuel whose prices continue to increase. The use of new and renewable energy (EBT) is one of the government's efforts to deal with climate change and realize a clean energy transition.