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Energy ministry claims using electric vehicles saves Rp2.77mn a year

Tempo - March 7, 2023

Dicky Kurniawan, Jakarta – Rida Mulyana, Secretary General of the Energy and Mineral Resources Ministry, claimed that electric vehicles can save customers up to Rp2.77 million on fuel expenses per year. Not only is it beneficial to the public, the use of electric vehicles also reduces the government budget.

"From the government's side we can also save Rp32.7 billion per year," Rida said at a press conference for Electric Vehicle Subsidy, Monday, March 6.

Rida said that the use of electric vehicles will also increase electricity consumption, estimated to reach 15.2 GWH per year. Switching from conventional vehicles to electric can also reduce gas emissions by around 0.03 million tons.

To encourage the public's adoption of electric vehicles, the government has officially announced incentives for electric vehicles, effective March 20, 2023. In the first phase, incentives will be given for the purchase of electric motorcycles, the maximum value is Rp7 million per unit.

Febrio N. Kacaribu, head of the Finance Ministry's Fiscal Policy Agency (BKF), said that the incentives apply to new electric motorbikes and converted electric motorbikes. This incentive is only given to electric motorbikes produced locally with a minimum Domestic Component Level (TKDN) of 40 percent.

Until December 2023, the subsidy quota is for 200,000 new electric motorbikes and 50,000 motorbikes converted to electric.

Source: https://en.tempo.co/read/1699557/energy-ministry-claims-using-electric-vehicles-saves-rp2-77mn-a-yea