Govt Mulls over Subsidy for Electric Vehicle Conversion
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September 20, 2022 | 10:07 am
TEMPO.CO, Jakarta - Indonesia’s Transportation Ministry is considering providing subsidies for the cost of converting fuel-based vehicles to electric vehicles in order to accelerate the mass use of battery-based vehicles in the country.
“Together with ministries, institutions, and related elements, we are discussing subsidies for the conversion of fuel vehicles to electric vehicles, especially for motorcycles,” said Transportation Minister Budi Karya Sumadi in a statement in Jakarta, Tuesday, September 20, 2022.
According to him, the ministry has issued a number of regulations regarding the conversion of electrified vehicles, namely No. 65 of 2020 and No. 15 of 2022.
The conversion subsidy could be done by switching the fuel subsidy budget allocation. “Local governments can also initiate to divert less productive budgets to the budget for electric vehicle conversion costs,” Budi explained.
He mentioned that converting a fuel-powered motorcycle to an electric one still takes a high cost at around Rp15 million. But when the demand increases and more workshops are capable of serving the conversion, the price will be more competitive.
Additionally, the ministry planned to apply a cheaper test fee for electric vehicles at Rp4,5 million compared to conventional vehicles at Rp9.5 million.
“In the future, we will try to free the test fee and the test will not only be conducted by the ministry but also certified public workshops. Training for the workshops to run the test has been running,” Budi said.
ANTARA
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