After the direct subsidy was revoked, until now business people have been waiting for incentives to purchase electric motorbikes. Understandably, this year their sales turnover has been sluggish.
The government, through the Ministry of Industry, claims to have prepared an incentive scheme for purchasing electric motors to encourage the growth of electric vehicles in Indonesia. With the incentives that will be disbursed in the near future, motorcycle prices will become more affordable for the wider community.
Like the direct subsidy of IDR 7 million per unit last year, this incentive scheme is an effort by the government to accelerate the energy transition from fossil-based vehicles to more environmentally friendly electric vehicles. The big goal is to achieve greenhouse gas emission reduction targets and reduce dependence on fuel oil imports.
The presence of this incentive scheme is clearly welcomed by entrepreneurs. They hope that this regulation will be ratified soon.
Chairman of the Indonesian Electric Motorcycle Industry Association (Aismoli) Budi Setiyadi said that the incentive scheme for purchasing electric motorcycles can be a direction for the development of Indonesian electric motorcycles in the future.
"We have been waiting for this incentive for a long time, when will it be issued or legalized because this can be a benchmark for industrial development. Don't let it be delayed again," he told SUAR in Jakarta (6/9).
According to Budi, there are three benefits if this incentive is issued:
- First, it encourages domestic industries, especially in terms of the use of a higher level of domestic components (TKDN).
- Second, increasing the adoption of electric vehicles in Indonesia, especially making it easier for people to buy electric motors whether through subsidies or VAT discounts.
- Third, it saves fuel subsidies. The use of electric motors can reduce fuel consumption, thereby reducing the cost of fuel subsidies issued by the government.
"This incentive scheme for purchasing electric motorcycles is clear evidence that the government is serious about developing the electric motorcycle industry," Budi said.
Finalization stage
Meanwhile, Minister of Industry Agus Gumiwang Kartasasmita said that his party has prepared an incentive scheme for the purchase of electric motorbikes.
However, the Ministry of Industry (MoI) is still waiting for a decision from the Coordinating Ministry for Economic Affairs (Coordinating Ministry for Economic Affairs) for an announcement regarding the value and timing of implementation. "The draft has been completed, we are just waiting for the direction of the Coordinating Ministry for the Economy whether there is anything that needs to be revised," Agus said in Jakarta, as quoted by Antara.
Agus said that the incentive scheme can be used for this year or next year.
Regarding the budget provided, Agus said that this is the authority of the Coordinating Ministry for Economic Affairs.
Although the planned new scheme has not yet been issued, last year, the government allocated a budget of IDR 1.75 trillion to subsidize the purchase of 200,000 units of new electric motorcycles and 50,000 units of converted motorcycles, with a discount on the purchase of new electric motorcycles of IDR 7 million per unit.
Currently, the Ministry of Industry is still waiting for a limited coordination meeting (rakortas) with the Coordinating Ministry for the Economy and other related ministries. After that, the Ministry of Industry will only issue a regulation of the minister of industry (permenperin) regarding the provision of incentives for two-wheeled vehicles in the electric segment (electric motorbikes), which is targeted to be published this year.
Two-way benefits
Economic observer from the Institute for Development of Economics and Finance (Indef) Eko Listiyanto said that the incentive scheme for purchasing electric motorbikes provides two two-way benefits, both for users and for the state.
The benefit for users is that the price is more affordable. Fiscal incentives, such as direct subsidies or Value Added Tax (VAT) exemptions, lower the selling price of electric motorcycles, making them more accessible to the general public.
Another benefit for users is the operational cost savings. Users can save up to 75% on fuel expenditure compared to conventional motors, as electricity costs are much cheaper.
The benefit for the country is that carbon emissions can be reduced. Electric motors do not emit exhaust emissions, thus greatly contributing to efforts to reduce air pollution and climate change.
Then, this incentive can develop the electric vehicle ecosystem, including electric motor manufacturing and the development of supporting infrastructure such as public electric vehicle charging stations (SPKLU), and create a sustainable ecosystem.
