Govt Tells Reasons Why Subsidy Given for Electric Motorbike Purchases
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14 December 2022 13:51 WIB
TEMPO.CO, Jakarta - The provision of subsidy for the purchase of electric motorbikes is part of the acceleration of the use of the Battery-Based Electric Vehicles (KBLBB) program, said Rachmat Kaimuddin as the deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs and Investment.
He explained that the subsidy could help the government save on fuel subsidies and encourage the sluggish industry of electric vehicles in the country.
“Accelerating the use of EVs is now increasingly crucial, not only in supporting the achievement of carbon emission reduction targets but also in encouraging reductions in fuel subsidies in Indonesia,” Rachmat said in a statement on Wednesday, December 13, 2022.
The reason the government preferred to grant subsidies for electric motorbikes than electric cars is due to a large number of motorcycle owners across the archipelago. At present, the government records that there are 21 million cars and 115 million motorbikes. This trend might consistently increase in line with the economic growth of the Indonesian people.
It would also increase the need for fuel subsidies. Moreover, there will be a hike in greenhouse gas emissions from the transportation sector.
Rachmat also argued that the growth in the vehicle number could hinder the government's commitment to reduce greenhouse gas emissions and goal to reach net zero emissions by 2060 or sooner.
Meanwhile, the number of electric vehicle users is still relatively lower than fossil fuel vehicle users. As of December 2022, sales of electric motorbikes and cars reached 15,000 units and 8,000 units, respectively. The figure is far from the total sales of fossil fuel bikes of up to 6.5 million units and cars at 1 million units.
“The comparison between electric vehicle sales and the total vehicle population is even smaller, at 0.01 percent for motorcycles and 0.04 percent for cars,” Rachmat outlined, adding that the government planned to collaborate with private parties to boost the number of EV users in Indonesia.
RIANI SANUSI PUTRI
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