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SME ministry, energy ministry join forces to push EV adoption
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Energy and Mineral Resources Ministry renewables director general Dadan Kusdiana (left) and Cooperatives and Small and Medium Enterprises Ministry secretary Arif Rahman Hakim (right) sign an MoU on Feb. 8, 2022. (SMEs Ministry/SMEs Ministry)
T
he Energy and Mineral Resources Ministry and the Cooperatives and Small and Medium Enterprises (SME) Ministry are working together to increase small businesses’ role in pushing electric vehicle (EV) adoption in Indonesia.
The ministries signed a memorandum of understanding (MoU) on Tuesday to officiate the partnership aimed to providing training for SMEs that will enable them to convert traditional motorcycles into electric ones.
The energy ministry’s renewables director general, Dadan Kusdiana, said the ministry aimed to have 1,000 combustion engine motorcycles converted to electric vehicles in 2022. The conversion program will be financially supported by two state-owned companies, Pertamina and PLN.
Moving forward, the energy ministry wants 13 million two-wheelers converted by 2025. The conversion is estimated to save Rp 319 trillion (US$22.16 billion) and reduce carbon dioxide emissions by 65 million tons.
“[The conversion of motorcycles] will create [potential sales] of Rp 50 trillion for SMEs, because they are expected to provide the necessary components for the conversion,” he said at the signing ceremony.
Read also: Indonesia 'still far' from EV adoption target: Ministry official
Pushing EV industry growth is part of the government's larger scheme to reduce greenhouse gas emissions by 29 percent by 2030.
