Riri Rahayu, Jakarta – The Indonesian government has decided to grant incentives for the purchase of electric motorbikes at Rp7 million per unit. Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that the policy will take effect starting on March 20, 2023.

"The incentive scheme is expected to stimulate the electric vehicle market, especially in Indonesia," said Luhut in a press conference at the Coordinating Ministry for Maritime Affairs and Fisheries office on Monday, March 6, 2023.

This is also in line with the Presidential Regulation (Perpres) No. 55 of 2019 concerning the acceleration of the battery-powered vehicle program (KLBB). Luhut said that as stipulated in the Perpres, the program is aimed at increasing the efficiency of energy security and energy conservation in the transportation sector, as well as realizing clean energy and clean air quality.

"And the most important thing is to reduce our dependence on imported fuel. This is in line with the government's commitment to reduce greenhouse gas emissions," said Luhut.

Furthermore, Luhut said the development of KLBB in Indonesia is highly reasonable because of the abundant availability of raw materials. The policy is also expected to encourage the creation of new jobs and state revenues.

However, the ambition to achieve massive KLBB development is hampered by the price of electric vehicles which are relatively more expensive than conventional vehicles.

"Therefore, we took the initiative to provide incentives [for the purchase of] electric motorbikes as a first step to increase the price affordability and people's purchasing power, and spur the development of the new energy automotive industry," Luhut concluded.

Source: https://en.tempo.co/read/1699200/indonesia-sets-to-roll-rp7mn-incentive-for-electric-motorbik