Moeldoko Believes EV Incentives for Commercial Vehicles Are More Effective
Jakarta — Moeldoko, chairman of the Indonesian Electric Vehicle Industry Association (Perkumpulan Industri Kendaraan Listrik Indonesia), urged the government to broaden the scope of electric vehicle incentives. He said stimulus policies should not only target passenger cars and electric motorcycles but also commercial vehicles such as buses, trucks, and logistics fleets. Moeldoko argued that commercial vehicles contribute far more to emissions than private vehicles and are a major user of subsidised diesel in Indonesia.
Currently, incentive support for electric vehicles is more focused on passenger cars and electric motorcycles. For commercial vehicles like electric buses and trucks, the schemes are not yet optimal and are not as broad as those for passenger vehicles.
According to Moeldoko, electrification of commercial vehicles could deliver significant emission reductions while also reducing subsidised fossil fuel consumption. Moreover, logistics operators are beginning to face rising operating costs due to increasing diesel prices.
Moeldoko noted that many commercial companies are already considering migrating to electric vehicles because maintenance costs for diesel-powered vehicles are seen to be rising. In some regions, the quality of diesel is also said to be inconsistent, affecting fleet maintenance costs.
“The commercial sector is already starting to think hard about moving. Because diesel prices are high, the quality is sometimes not good, which drives up maintenance costs,” he said.
He also suggested that incentive schemes for commercial vehicles could be calculated based on the level of carbon emission reductions and fuel consumption. The greater the emission reductions achieved, the larger the incentive.
In addition to vehicle incentives, Moeldoko highlighted the importance of developing a supporting ecosystem such as SPKLU for commercial vehicles. He said charging stations need to be expanded beyond the island of Java to optimise the use of electric vehicles.
“The ecosystem issue we continue to fight for is how SPKLU availability is in various regions, not only on the island of Java,” he said.