Government Prepares Incentives for Electric Vehicles, Here Are the Details

Finance Minister Purbaya Yudhi Sadewa has stated that the government is preparing incentives for electric vehicles. The details include 100,000 units of electric cars and 100,000 electric motorcycles. The incentive scheme will first be discussed by Industry Minister Agus Gumiwang Kartasasmita and Coordinating Minister for the Economy Airlangga Hartarto. For electric motorcycles, the incentive could reach Rp 5 million per motorcycle, though the exact figure has not yet been determined. Purbaya believes there is potential for electric vehicles to replace petrol motorcycles. This transition is expected to drive economic growth. Purbaya agrees with Agus Gumiwang that electric vehicles are one strategy to strengthen the national economy. “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 will be announced again by the Minister of Industry, Coordinating Minister for the Economy, and others,” said Purbaya. The plan is for 120 million motorcycles to undergo conversion in the initial batch in 2026. Bahlil stated that this will be done gradually. Bahlil himself has been appointed by the President as the Head of the National Energy Transition Task Force, which is a long-term government programme. First, to reduce air pollution levels, and second, to develop renewable energy in Indonesia. “This is long-term to reduce our pollution as well. This is part of the new energy that is needed,” said Bahlil.