TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto, said that growth in the number of vehicles had increased in 2022. However, sales of electric vehicles remain low.

Airlangga explained that the sales of new cars had increased by 1.48 million units, which equals to 18 percent. Meanwhile, the export of Completely build-Up (CBU) cars is recorded at 473,000 units and the export of Completely Knocked-Down (CKD) units is recorded at approximately 600,000 units.

In addition, sales of motorcycles reaches up to 5.2 million units in 2022, experiencing a 3.2 percent growth. Meanwhile, the export of motorcycles is recorded at 743,000 united, adding up to nearly 6 million units sold in 2022.

However, on the other hand, sales of electric cars remain low with only 10,180 units sold.

"This is a challenge, how can we target thousands of units of electric cars [can be sold]," Airlangga said during his opening speech at the GJAW 2023 automotive exhibition in Senayan, Central Jakarta on Friday, March 10, 2023.

One of the government's efforts to drive electric car sales is by providing incentives. Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan had earlier announced that incentives for electric cars and motorcycles will be in effect starting on March 20 until December 2023.

The incentives will be applicable to electric cars, converted electric motorcycles, and electric bus. However, the government had only announced the value of electric motorcycle incentives, which is Rp7 million for each unit.

The subsidy for electric motorcycles will only apply to domestically produced motorcycle with 40 percent Domestic Component Ratio. The quota for electric motorcycle will be available for 200,000 new motorcycles, and 50,000 converted electric motorcycle until December 2023.

For converted electric motorcycles, the incentives will be provided to micro, small, and medium businesses, especially beneficiary of Business Loans, Micro Business Productive Aid, and electric consumer with 450 to 900 VA electricity.

DICKY KURNIAWAN

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