JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said the government would start providing subsidies for electric vehicles in March 2023.
This aims to suppress imports of crude oil and reduce the use of fuel in Indonesia.
Arifin said, there are at least 120 million units of oil-fueled motorcycles in Indonesia.
"We only use 1 liter a day, the same as burning crude oil 600,000 barrels. That's only a day, 85 dollars is almost 50 million dollars," said Arifin, quoted on Tuesday, February 21.
With the transfer to electric vehicles, continued Arifin, the money used for subsidized fuel and oil imports can be used for other purposes for domestic problems.
Arifin said that for the first phase, his party will target the conversion of oil-fueled motorcycles into electric motorcycles as many as 50,000 units.
For 2023, the government will disburse subsidies for the purchase of new electric motors or conversions of 50,000 units.
"This year, we will convert to a minimum of 50,000 first. But we are still trying to develop workshops. Later, we will work with the Minister of Transportation to be able to develop workshops," continued Arifin.
Tasrif said that later the subsidy given to cars was not in the form of money.
"In the past, there were four-wheeled vehicles but not money," he added.
Arifin said this was the result of a coordination meeting with the Coordinating Ministry for Maritime Affairs and Investment and the Minister of Transportation on Monday, February 20.
For the initial stage, this subsidy will be applied to two-wheeled vehicles or motorcycles.
Just so you know, the amount of subsidies for electric motors will be given in the amount of Rp. 7 million either for conversion motors or for the purchase of new motorcycles.
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