Minister Of Industry: Recipients Of Electric Vehicle Incentives Are Not Automotive Automotive Plants

Minister of Industry Agus Gumiwang Kartasasmita. (Photo: Doc. Antara)

Minister of Industry Agus Gumiwang Kartasasmita said the government was still finalizing incentive rules for buying cars or electric motorbikes in Indonesia.

It is certain that the incentive is only given to automotive companies that have electric vehicle factories in Indonesia.

Agus said the requirements for providing electric vehicle incentives were quite strict because business actors had to have factories in the country.

Currently, he said, only Hyundai and Wuling Motors have mass production facilities for electric vehicles in the country.

"Later, we can tag (sign) how much electric vehicle (EV) costs that we can provide incentives," said Agus.

According to Agus, the provision of incentives for electric vehicles should not be arbitrary, so that it can be right on target.

Until now, the government is still discussing the finalization of the incentive policy, including schemes, formulas, criteria for subsidy recipients, and budget needs.

The government also considers many aspects when determining which electric vehicles deserve incentives.

Not only that, but the government is also planning to discuss plans for electric vehicle incentives with the House of Representatives (DPR), especially regarding the policy budget.

"The government will certainly consult with the DPR, because the government is still finalizing it, of course we can't officially convey it, but when it comes to the budget, we have to discuss it with the DPR," he added.

Even so, he ensured that the plan to provide incentives was an effort by the government to accelerate the development of the electric vehicle ecosystem in Indonesia.

"This incentive is also designed as a government effort to reduce carbon emissions from the transportation sector," Agus concluded.

Previously, the government planned to provide incentives for every purchase of electric vehicles, both cars and motorbikes, which are produced by companies that own factories in Indonesia.

According to the plan, the incentives to be provided for the purchase of electric cars are around Rp. 80 million, and for hybrid-based electric cars around Rp. 40 million.

Meanwhile, for the type of two-wheeled vehicle, the government will provide incentives of around Rp. 8 million. Then, the conversion motorbike into an electric motorcycle gets an incentive of around Rp. 5 million.

This incentive is expected to provide various benefits for the development of the electric vehicle industry.