Energy Minister: Incentives for Electric Motorcycle Purchase to Kickstart March 2023
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22 February 2023 07:30 WIB
TEMPO.CO, Jakarta - Energy and Mineral Resources (ESDM) Minister Arifin Tasrif announced that the government will start introducing incentives for the purchase of electric motorcycles in March 2023. He said the amount will be Rp7 million.
“For [electric] motorbikes, it is around Rp7 million. For [electric] four-wheelers, it will not be in the form of cash [but instead tax incentives],” said Arifin at the office of the Coordinating Ministry for Maritime Affairs and Investment in Jakarta, Monday, February 20, 2023.
Meetings about the incentives have been carried out between ministries, including the Ministry of Transportation, the Coordinating Ministry for Maritime Affairs and Investment, and the Ministry of Energy and Mineral Resources. Monday’s discussion was about the incentive which was aimed at achieving the goal of Net Zero Emissions (NZE) in the country.
“Earlier, we discussed the implementation of electric vehicle (EV) subsidies. [We expect the implementation to start] in March,” Arifin said after the closed meeting.
The subsidies will be provided for new battery-powered motorbikes and conventional motorbike conversion. The Transportation Ministry targeted 50,000 motorcycles to be converted into electric ones this year. The government also eyed opening 1,000 certified workshops to support the implementation of motorbike conversion in Indonesia.
“We agreed that at least 1,000 workshops [of conventional motorbike conversion are opened] throughout Indonesia,” said Transportation Minister Budi Karya Sumadi on the same occasion.
In this electric motorcycle conversion project, the Industry Ministry proposed a Domestic Component Level (TKDN) of 40 percent in the early stage. The TKDN figure will then be hiked within three years.
DICKY KURNIAWAN
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