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EV producers upbeat over planned purchase subsidies
The country's EV industry association is optimistic that the government's plan to issue a purchase subsidy for electric motorcycles, possibly with one for electric cars to follow, will drive local EV adoption.
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Deputy State-Owned Enterprises Minister Kartika Wirjoatmodjo (center) looks at a model during a visit on Sept. 15, 2022 to a PT Barata Indonesia factory in Gresik, East Java, after signing a heads of agreement (HoA) on developing and manufacturing of electric vehicle components with PT VKTR Mobility Technology president director Gilarsi W. Setijono (left), PT Barata Indonesia marketing director Sulistyo Handoko (second left) and PT PPA president director Yadi Jaya Ruchandi (right). (Courtesy of PT VKTR Teknologi Mobilitas/-)
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lectric vehicle (EV) producers are confident that the planned subsidy for purchasing electric cars and electric motorcycles will drive EV sales in Indonesia.
Tenggono Chuandra Phoa, secretary-general of the Indonesian Electric Vehicle Industry Association (Periklindo), told The Jakarta Post on Thursday that the subsidy would significantly increase the EV adoption rate.
According to Tenggono, assuming that an electric motorcycle cost Rp 22 million (US$1,425), the planned purchase subsidy of Rp 6.5 million per vehicle would reduce the cost of an electric motorcycle to less than the price of a comparable fuel-powered motorcycle, which generally cost around Rp 18 million.
“The challenge now is to formulate the most [effective] technical guidance to ensure that the subsidy is on target and that [its] disbursement is entirely transparent to the public,” he added.
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said the government was finalizing the purchase subsidy scheme of around Rp 6.5 million per electric motorcycle to drive sales across the country. He added that a similar purchase subsidy scheme for cars was being considered, but did not provide any details.
“If you want to swap your [fuel-powered] motorcycle for an electric one next year, do it. You will get a subsidy,” Luhut told a banking forum hosted by online media Katadata and broadcast live on Nov. 29.
Amid the high prices of gasoline and diesel fuel, the government has been pushing for the faster adoption of EVs nationwide, aiming to get at least 1.2 million electric motorcycles and 35,000 electric cars on roads by 2024.
