TEMPO.CO, Jakarta - The Indonesian government planned to grant subsidies for the purchase of electric vehicles, particularly electric motorbikes, starting next year. Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan estimated that it might be worth Rp6 million per motorbike.

“We will soon launch an electric car with subsidies. We are now finalizing [subsidy policies for] motorcycles. It may be Rp6 million. In Thailand, [the subsidy is worth] Rp7 million, maybe it is around Rp6.5 million here,” said Luhut at the Welcoming Stronger Investment Post-Pandemic event on Tuesday, November 29, 2022.

Fuel Consumption Can Be Suppressed

According to him, the government is still discussing the policy and the amount of the subsidy, hoping that the consumption of fuel oil could be reduced.

The Finance Ministry noted that the realization of energy subsidies, including for fuel, had reached Rp184.5 trillion as of October 31, 2022. The figure was higher than last year's position which amounted to Rp144.4 trillion.

Luhut also shared optimism that people’s transportation costs, especially for fuel, could also be lowered by using electric vehicles. “In our calculation, it will be more profitable to use electric motorbikes than fuel-powered motorbikes and cars,” he said.

Not only in terms of buying electric vehicles, Luhut went on, the government is also preparing a subsidy scheme for people willing to convert their vehicles’ engines from conventional to battery-based ones.

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