Finance Minister: Electric Vehicle Incentives to Be Prepared, Initial Quota of 100,000 Units
Finance Minister Purbaya Yudhi Sadewa stated that the government will prepare incentives for electric vehicles (EVs). The incentives will be provided for 100,000 electric cars and 100,000 electric motorcycles this year.
“The first 100,000, if they run out, we will provide more (incentives). The scheme will be explained by the Minister of Industry, and the Coordinating Minister for the Economy will also detail it. The same applies to electric motorcycles; we will provide for the first 100,000,” said the Finance Minister during the APBN KiTa press conference in Jakarta on Tuesday.
Regarding the subsidy amount, he estimated it would be around Rp 5 million for electric motorcycles. However, the exact figure for the electric vehicle stimulus will be announced in more detail along with other relevant parties.
Purbaya expressed interest in the EV incentive opportunity following his meeting with Industry Minister Agus Gumiwang this morning.
This, he continued, is relevant to efforts to reduce fuel oil (BBM) consumption and lessen the government’s energy subsidy burden amid rising global oil prices.
“I am interested in their proposal to subsidise electric vehicles. Besides encouraging consumption, secondly, we can reduce BBM consumption. So, moving forward, if this is accelerated, it will further strengthen our economic budget resilience,” he said.
He also agreed with the Industry Minister’s statement that the government now views electric vehicles as part of the national economic strengthening strategy, particularly to maintain manufacturing industry resilience and protect the workforce.
“This is to encourage economic growth in the short term ahead, in the third and fourth quarters. It will start running from early June. This is a policy that has been discussed, but it will be announced again by the Industry Minister, Coordinating Minister for the Economy, and others,” said Purbaya.
“But our current spirit is to ensure all economic engines are running. On the demand side, we are already pushing it now, and in the manufacturing sector, we are pushing it,” he added.
Previously, Industry Minister Agus stated that providing electric vehicle incentives is now increasingly relevant, not only related to emission reduction agendas but also due to the shift in the automotive market trend towards electric-based vehicles resulting from geopolitical turmoil and energy uncertainty.
In addition to discussing electric vehicle stimulus, Agus mentioned that the two ministers also discussed efforts to increase exports of Indonesian manufacturing products.