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Cheaper! IDR 7 Million Subsidy for Electric Motorcycles to be Released Next Week

Jakarta

The Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, revealed that the subsidy policy for electric vehicles will be released in early February 2023. One of the leaks is about the amount of incentives for buying new electric motorbikes.

The amount of subsidy disclosed by Luhut was IDR 1 million less than the amount stated by the Minister of Industry Agus Gumiwang. In mid-December last, Agus said that for electric motorbikes, they only received a subsidy of Rp. 8 million.

“We have finalized it (regarding KBLBB) at the Ratas (Limited Meeting) yesterday, next week the Ministerial Regulation (Ministerial Regulation) must be issued from the Ministry of Finance regarding subsidies and so on. Hopefully next week, early February. Rp. 7 million, that’s about for new electric motorbikes and all of them will be announced later, priority will be given to simple people,” said Coordinating Minister Luhut at the 2023 Saratoga Investment Summit in Jakarta, (26/1/2023).

According to the government’s plan, in addition to new motorbikes, the purchase of electric cars will receive a subsidy of around Rp. 80 million. Then the conversion of electric motors can get a subsidy of IDR 5 million.

But this incentive is only given to vehicles that have factories in Indonesia. The Minister of Industry said during a working meeting with Commission VII, Thursday (8/12) that only three electric car companies producing in Indonesia were known to be Wuling, Hyundai and DFSK. Meanwhile, Toyota has also produced local hybrid models, Innova Zenix and Suzuki Ertiga for the mild hybrid category.

Meanwhile, 35 companies have produced local two-wheeled and three-wheeled motorcycles. Some of the brands include Alva One, Gesits, Viar, Polytron, United Motor, Charged, and Volta.

The Coordinating Minister for the Economy, Airlangga Hartarto, has also disclosed the amount of subsidies from the state budget. He said Indonesia needed market development so that the number of electric cars could reach at least 20 percent by 2025 or around 400 thousand units.

“We will give an incentive in a certain amount of rupiah. We are currently talking to the Minister of Finance (Sri Mulyani), the value is Rp. 5 trillion. Later it will be divided, how many motorbikes, how many cars. We will also consider the bus,” he said.

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(admin/rgr)

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