Jokowi Is Considering Incentive Rules for Electric Public Transport

Electric Bus in Jakarta

President Joko Widodo (Jokowi) stated that the government is currently considering a policy regarding providing incentives for electric public transport vehicles. With that, the policy of providing electric vehicle incentives gets a new bright spot.

This was conveyed by Jokowi to answer questions regarding incentives for electric vehicles in the form of incentives for purchasing motorbikes and personal electric cars which are feared to only target people with affluent economic backgrounds.

“Incentives for electric public transport, as long as production is domestic, of course, the calculation is different. Later, when the calculations are final, this decision is final, and then we will convey it,” Jokowi said, quoted from the Presidential Secretariat’s Youtube page on Wednesday (21/12/2022).

Jokowi said that the plan to provide incentives for electric vehicles had been carefully considered. According to him, this incentive will also have an impact on Non-Tax State Revenue (PNBP).

“The provision of this incentive is carried out by calculations and studies and studying other countries, especially in Europe, which has already done it. We hope that with these incentives the electric car and electric motorcycle industry in our country can develop. If they develop, taxes will definitely increase, and Non-Tax State Revenue (PNBP) will increase,” he said.

Previously, Gadjah Mada University Energy Economics Observer, Fahmy Radhi also said the same thing. According to him, the government’s discourse to provide subsidies for the purchase of electric vehicles is not intended for people who have an affluent economic background. This incentive is aimed at consumers who prevent the price of electric vehicles from migrating to electric vehicles.

As previously reported, 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.