The Government Will Hold A Meeting To Discuss The Revision Of Electric Motor Incentives

Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan revealed that he would soon hold a limited meeting (ratas) with related parties to discuss the expansion of the requirements for receiving electric motor incentives.

"We want to eradicate this tomorrow and finalize it immediately," Luhut told reporters, Monday, July 24.

Luhut said the requirement policy would be adjusted to the incentive provisions that had been carried out by neighboring countries.

"We want to match all the incentive provisions in the surrounding country," added Luhut.

Previously on different occasions, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif revealed that the realization of the application for electric motor convenience was still very low.

Of the 50,000 vehicles allocated, to date there have only been 5,000 applications received by the Ministry of Energy and Mineral Resources.

For this reason, Arifin supports the expansion of incentive recipients.

"We like that even more. The demand (conversion) in our sector is still 5000," continued Arifin.

Presidential Chief of Staff (KSP) Moeldoko as well as General Chair of the Indonesian Electric Vehicle Industry Association (Periklindo) ensured that the government periodically evaluates incentive mechanisms or government assistance for electric vehicles (EVs), in response to the low interest in buying electric vehicles.

"We periodically evaluate two government incentives, provide government assistance. One is for motorcycles. The second is for cars," said Moeldoko after a discussion with the Indonesian Chamber of Commerce and Industry (Kadin) and a number of vehicle associations at the Indonesian Chamber of Commerce and Industry, Jakarta, Wednesday.

It is known, the government has set a Government-Borrowed Value Added Tax (PPN DTP) incentive for the purchase of electric cars that have criteria for the Domestic Component Level (TKDN) value of 40 percent with a quota of 35.900 units.

Through this incentive, the VAT charged to buyers is only 1 percent.

In addition, government assistance or subsidies for electric motors have also been set in the form of discounted prices of Rp. 7 million for the purchase of an electric motorcycle that has a minimum TKDN of 40 percent with a quota of 200,000 units.

This electric motor subsidy is intended for people who are beneficiaries of people's business credit, productive assistance for micro businesses, wage subsidies, and/or recipients of electricity subsidies up to 900 VA.

"What we really pay attention to is why government assistance requires those four things, how come the absorption is so low. Well, this is what we continue to boost (evaluate), whether this is related to the old restitution and so on," said Moeldoko.