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Jakarta Proposes Increase in Petrol Motorbike Tax to Subsidize LRT; Electric Motorbike Subsidy Falling Short

Jakarta

It is proposed that the petrol motorbike tax will be increased to subsidize the costs of public transportation such as the LRT. On the other hand, electric motorbikes are actually given a subsidy of IDR 7 million from the government.

This policy seems to force people to switch from petrol motorbikes to electric motorbikes. The main goal is to improve air quality in Indonesia by using non-emission electric vehicles.

On the other hand, not many people choose electric motorbikes. In fact, the distribution of electric motorbike subsidies has fallen far short of the target.

In 2023, the government targets electric motorbike subsidies to reach 200 thousand units. Of the 200,000 units targeted, new electric motorbike subsidies will be distributed to 11,532 units in 2023. Therefore, the government is reportedly going to reduce the electric motorbike subsidy target to 50 thousand units this year.

As a comparison, the Indonesian Motorcycle Industry Association (AISI) recorded that motorbike sales in 2023 will reach 6.2 million units. National motorbike sales are still dominated by petrol engine motorbikes.

A comparison of motorbike sales figures can be a reference. According to the Head of Commercial Affairs of the Indonesian Motorcycle Industry Association (AISI), Sigit Kumala, if people want to buy electric motorbikes, sales will definitely increase.

“Let’s see in reality how many (electric motorbikes) were sold?” said Sigit in a conversation with detikOto via telephone, Friday (19/1/2024).

“I’m just being realistic. Because if it’s good, consumers will definitely switch,” he said.

According to Sigit, when choosing a product to buy, motorbike consumers have many considerations. They buy motorbikes not only at cheap prices thanks to subsidies.

“But looking at whether the infrastructure supports operations, before buying a motorbike, Indonesians think about the resale price, then what the aftersales service will be like. So if everything can be sorted out, it should work (the switch to electric motorbikes), no problem,” said Sigit.

“So it’s not just being hit from one side (in terms of subsidies). I don’t think it will solve the problem if the infrastructure isn’t cleaned up first,” he said.

Watch the video “Electric motorbike sales in Denpasar skyrocket after IDR 7 million subsidy”

(rgr/dry)

2024-01-20 00:09:55
#government #forces #people #switch #electric #motorbikes #reality #enthusiasts

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