Incentives for Electric Vehicles Should Be for Areas with Poor Access to Fuel, Says MTI

TEMPO.CO, Jakarta - Head of Advocacy and Community Affairs of the Indonesian Transportation Society (MTI), Djoko Setijowarno, responded to the Industry Ministry's plan to provide incentives for the purchase of electric vehicles or EVs.

Djoko opined that the incentive should not be given to users in urban regions, especially on the island of Java. “[Instead,] give it to areas that have difficulty getting fuel. Recommend them to use electric automobiles for local mobility,” he said in a written statement, Tuesday, January 24, 2023.

Incentives for battery-powered vehicles in urban areas, the transportation observer added, should be allocated to improve electrified public transportation.

As previously reported, the government planned to grant incentives of Rp40 million for the sale of hybrid electric cars, Rp80 million for battery-based electric cars, Rp8 million for electric motorbikes, and Rp5 million for converted electric motorbikes.

Djoko conveyed support for the government's plan to develop the EV ecosystem in the country, let alone given the current energy crisis.

At least 80 percent of subsidized fuel was enjoyed by transportation users. Indonesia also imported more than 50 percent of its fuel needs. Thus, he considered now the right time for the government to withdraw fuel subsidies.

However, Djoko assessed that the electric vehicle development should be carried out in areas with poor access to fuel, such as Agats, Asmat Regency of Papua Province. 

Based on data from the Asmat Transportation Agency, there were 3,154 electric automobiles, including 3,067 electric motorbikes, operating in the region as of November 2018.

“Not many people know that since 2007, residents in Agats, Asmat Regency have been using electric vehicles for mobility. The limited access to fuel is one of their obstacles at that time,” Djoko explained.

Therefore, MTI hoped that the central government could present electric vehicle subsidies to the region so that the transportation costs for fuel distribution could be saved. Besides, the incentives could be deemed as a tribute to Agats people who are already using environmentally friendly vehicles in their area.

RIANI SANUSI PUTRI

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