Electric Vehicle Subsidy Is An Effort To Accelerate The Conversion Of Fuel Vehicles To Electric

Electric Vehicle Subsidy (Unsplash)

YOGYAKARTA - The Ministry of Transportation seeks to provide subsidies to be carried out to convert rates for oil-fueled motorized vehicles (BBM) to battery-based electric motorized vehicles (KBLBB). This is carried out in the context of accelerating the mass KBLBB application in Indonesia. Is it related to the subsidy of electric vehicles?

As reported by the Debhub website, as an effort to accelerate, the Ministry of Transportation has issued a number of rules, the first is for motorcycles through the Minister of Transportation Regulation Number 65 of 2020 concerning the Convertion of Motorcycles with Bakar Motor PIning into Battery-Based Electric Motorcycles.

Then, for vehicles except for motorbikes such as: Vehicles, Bis, and other vehicles driven by mechanical equipment in the form of machines except for vehicles running on the tracks, the Minister of Transportation Regulation Number 15 of 2022 has been issued regarding Motorized Motive Conversion except for Motorcycles with Bakar Motorcycle PIning into Battery-Based Electric Motorized PIONEers.

"We, together with the Ministry/Institutions and related elements, are discussing a subsidy to convert fuel to electricity vehicles. Especially for motorcycles," said the Minister of Transportation while attending the conversion program for fuel-to-electric motorcycles initiated by the Ministry of Energy and Mineral Resources, Monday (19/9) in Jakarta.

The Minister of Transportation said that conversion subsidies can be carried out from the transfer of fuel subsidy budget rations. "From the local government, it can also initiate to divert underproductive budgets, so that they are diverted to provide subsidies for conversion rates to electric vehicles," said the Minister of Transportation.

Currently, the tariff for running the conversion of fuel motorcycles to electricity is still quite high, which is around Rp. 15 million. However, if demand increases, and workshops that are able to serve conversions have increased, it is hoped that the price will be more competitive.

Another effort that has been carried out by the Ministry of Transportation to accelerate the mass presence of KBLBB in Indonesia is to use a cheaper variety of test rates for electric vehicles compared to conventional vehicles (BBM). For example, for an electric motorcycle type test rate of IDR 4.5 million, compared to conventional motorcycles of IDR 9.5 million.

"In the future, we will try to make free types of tests. Then, we will also try to do type tests not only carried out by the Ministry of Transportation. But it can be done in certified public workshops. 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 conversion program for fuel-to-electric motorcycles, in the form of making the main parts to the form of products to become motorcycles. In 2022, a pilot project will be run targeting 120 electric motorcycles and will become more massive in 2023. Except for that, his party is also carrying out coaching for workshop business actors, so that more and more workshops can carry out conversions according to applicable regulations.

According to him, a number of benefits obtained from the application of KBLBB include: tariffs are more efficient, more environmentally friendly, and reduce fuel dependence whose prices continue to increase. The use of new and renewable power (EBT) is one of the government's efforts to deal with climate change and make the transition of clean energy.

Efforts to accelerate are also carried out by the government, through Presidential Order Number 7 of 2022 concerning the Application of Battery-Based Electric Vehicles (Battery Electric Vehicles) as Vehicles of the Operational and/or Individual Service of Government Agencies {Sentra} and Regional Government on September 13, 2022.

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