Luhut Says Rules on Incentives for Electric Vehicle Purchase to Be Issued in February

TEMPO.CO, Jakarta - Regulations on incentives for the purchase of electric vehicles or EVs will be issued in early February 2023, said Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan.

At the 2023 Saratoga Investment Summit in Jakarta, Luhut emphasized that the purchase grant was aimed at accelerating the use of battery-based motorized vehicles (KBLBB).

“We have finalized it (regulations on KBLBB) at yesterday’s Ratas (limited meeting). Next week, the Ministerial Regulation should have been issued by the Finance Ministry regarding subsidies and others. Hopefully next week, early February, around Rp7 million [incentives] for a new electric motorbike will later be announced, be prioritized for people,” Luhut said in a statement in Jakarta, Thursday, January 26, 2023.

According to him, Indonesia is ready to build an ecosystem towards KBLBB transformation which is evident from the construction of the Kalimantan Industrial Park Indonesia (KIPI) in Tanah Kuning, North Kalimantan.

“There are already raw materials for the ecosystem we are building, the refineries, the batteries, everything has been arranged. This is already underway and the President will attend the groundbreaking ceremony on February 27. [It will have a capacity of] 1,400 Megawatts from 10,000 Megawatts in the Kayan River and its surroundings. So this is one of the largest and greatest downstream industries in Tanah Kuning,” Luhut added.

Industry Minister Agus Gumiwang Kartasasmita previously stated that regulations on the incentives for the purchase of electric vehicles were being finalized. The government prepared an Rp80 million grant for the purchase of an electric car, an Rp8 million grant for electric motorcycles, a Rp40 million grant for hybrid-based vehicles, and a Rp5 million grant for those who convert their motorcycle to electric ones. 

ANTARA

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