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Govt misses EV two-wheeler subsidy target by huge margin
Indonesia’s subsidy program for electric motorcycles missed the mark last year, falling far short of its ambitious goal with only 11,532 units purchased out of the 200,000 targeted.
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Give and take: A ride-hailing driver exchanges his motorcycle battery for a fully charged one on March 4, 2022, at a Pertamina gas station in East Jakarta. (Antara/M Risyal Hidayat)
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ndonesia’s subsidy program for electric motorcycles missed the mark last year, falling far short of its ambitious goal with only 11,532 two-wheeler electric vehicles (EVs) purchased.
That amounts to a mere 5.7 percent of the 200,000-vehicle target.
It also means the program consumed roughly Rp 78 billion (US$5 million) in state funding, according to the Industry Ministry, a small fraction of the Rp 1.4 trillion that was budgeted for the program last year.
The lackluster performance prompted the ministry to attempt to return the unspent funds to the Finance Ministry in December, but the request was denied.
“The low absorption rate is a burden for us, as we failed to achieve a high budget utilization,” Industry Minister Agus Gumiwang Kartasasmita said on Wednesday, as reported by news agency Antara.
He added that the inability to effectively distribute the subsidies led to a 77-80 percent drop in budget absorption.
In light of the program’s shortcomings, the ministry has scaled back its EV two-wheeler subsidy goal for 2024.
