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Moeldoko reveals issues on electric vehicle subsidy distribution

Tempo - May 19, 2023

Dicky Kurniawan, Jakarta – Presidential Chief of Staff Moeldoko disclosed a number of problems that complicate the distribution of electric vehicle subsidies in Indonesia. He emphasized that simplification in the policies is a necessity.

The first problem is that subsidies for the purchase of electric motorbikes are only given to certain groups of people, such as the poor and Micro, Small, and Medium Enterprises (MSMEs). This policy, he opined, needs to be considered again so that all elements can receive the incentives.

"We are evaluating this policy, finding the problem. Everyone cannot get subsidies so that is the reason for the delay," Moeldoko said at the opening of the 2023 Periklindo EV Show (PEVS) exhibition, on Wednesday, May 17, 2023.

The chairman of the Indonesian Association of EV Industries (Periklindo) also said that the lack of restitution is also another obstacle to rolling out the incentives for the purchase of battery-powered vehicles in the country.

"The 10-percent and 1-percent taxes are borne by the buyer, but the dealer bears the restitution. This is feared that the government will later pay the restitution for one year, so it will be a burden for the dealer," he elaborated.

Moeldoko hoped that the government can conduct an evaluation after the subsidies are distributed and issue new policies that have been adjusted to the realization.

"Let's just wait for the next government policy. The legal umbrella [on electric vehicles] already exists, which is the Decree of the Finance Minister (PMK), so it's just a matter of how to work around it to make it simpler," he said.

Source: https://en.tempo.co/read/1727520/moeldoko-reveals-issues-on-electric-vehicle-subsidy-distributio