Coordinating Minister of Maritime Affairs and Investments (Coordinating Minister of Maritime Affairs) Luhut Binsar Panjaitan revealed the government’s plans to subsidize the purchases electric vehicle next year.
This is done in order to encourage the purchasing power of people to own electric cars and motorcycles.
According to Luhut, the government is currently finalizing a subsidy scheme of IDR 6.5 million for the purchase of an electric motorcycle.
A similar subsidy scheme is also in preparation for the purchase of electric cars.
“If you want to convert motorcycles to electricity next year, yes. You will get subsidies later,” Luhut said at a banking forum as quoted by Reuters on Wednesday (11/30).
Indonesia itself has a goal of at least 1.2 million electric motorcycle owners by 2024. Meanwhile, for electric cars, the government has a target of 35,000 units.
Industry groups say demand for electric vehicles is growing, but sales volumes are still miniscule compared to fossil-fuel cars. This is because the price of electric vehicles is higher.
On the other hand, the government wants to develop its electric vehicle and battery industry in the country.
This is in line with the nickel ore export ban to secure supply for investors in the ore from 2020.
To encourage the use of electric vehicles, the government has also provided tax relief for sales of electric cars and hybrid cars since 2019.
(mrh/sfr)
