TEMPO.CO, Jakarta - Indonesian President Joko "Jokowi" Widodo stated that he would prioritize subsidies for the purchase of electric motorcycles over cars. This was because he was informed that battery-powered cars are indent products, which means buying them requires lead times from two months to one year.

“I have asked about the queue time for the purchase of electric cars and some take 2 months, 6 months, let alone they are given incentives. But [the incentives] are still being calculated,” said the President when visiting the 2023 Indonesia International Motor Show (IIMS) in Kemayoran, Jakarta, Thursday, February 16, 2023.

He confirmed that the amount of the incentives was still being calculated by the Ministry of Finance. “But of course, [electric] motorbikes will come first.”

Since the end of last year, the government has planned to grant incentives of up to Rp5 trillion for the purchase of electric vehicles, starting from cars, and motorbikes, to buses. This was inspired by such policies implemented by all countries in the world, especially in Europe.

Industry Minister Agus Gumiwang Kartasasmita previously announced the subsidies or incentives would reach Rp80 million for electric cars and Rp8 million for electric motorbikes.

Jokowi hoped that this incentive would boost the development of the electric vehicle industry in the country, which would then increase tax revenue and Non-Tax State Revenue (PNBP) as well as widen employment opportunities.

FAJAR PEBRIANTO

Editor's Choice: Minister Discuss Incentives for Electric Vehicles

Click here to get the latest news updates from Tempo on Google News