Buying an Electric Car Can Get a Subsidy of Rp. 80 Million?

An officer charges an electric car at the General Electric Vehicle Charging Station (SPKLU) in the Fatmawati area, Jakarta, Saturday (12/12 - 2020). ANTARA PHOTO\\r\\n

The government is accelerating the energy transition by promoting electric vehicles. The government even plans to provide a subsidy of IDR 80 million for every purchase of an electric car.

Subsidies of IDR 80 million will be given for every purchase of an electric car, and IDR 8 million for the purchase of an electric motorbike. Regarding this matter, the Minister of Finance will still examine it in more depth.

Minister of Finance Sri Mulyani said that currently, the government is calculating the provision of subsidies for electric vehicles, so the amount of the incentive value is not yet final.

“As I said, we will calculate it,” he said when met at the DPR RI building, Thursday (15/12/2022).

Sri Mulyani revealed, in calculating the budget allocation for subsidizing electric vehicles, the government will also calculate its supporting industries. This means that the government does not only provide incentives to its consumers.

The subsidy budget for electric vehicles is planned to be included in the 2023 State Budget. This means that there will be a change in budget posture and the impact that will be caused.

“The impact on the state budget is therefore included in 2023,” he said.

In determining the policy for electric vehicles, said the woman who is familiarly called Ani, it must first be submitted and discussed in the DPR RI. “We are thinking about the process within the government and later with the DPR,” he said.

Previously, the Ministry of Industry (Kemenperin) would provide subsidies to consumers of electric vehicles. Incentives are given to consumers who buy vehicles from companies that have factories in the country. The amount of the subsidy is IDR 80 million, while the purchase of subsidized hybrid-based cars is IDR 40 million.

Not only electric cars but the purchase of electric motorbikes will also be given a subsidy of IDR 8 million. Meanwhile, for convertible motorbikes, the subsidy is Rp. 5 million.

This was done in the context of energy transformation and encouraging the use of environmentally friendly vehicles which other countries have implemented similar policies.