Minister of Finance Will Discusses Subsidies for Electric Vehicles

electric motors

The government plans to subsidize the purchase of electric vehicles next year. Regarding this, the Minister of Finance, Sri Mulyani, will soon discuss the proposal.

Sri Mulyani, when met at her office, Thursday (1/12/2022), said, “It will be discussed later.”

The Minister of Industry (Menperin) Agus Gumiwang also conveyed the same thing. The subsidy plan for electric vehicles purchase has been submitted to the Minister of Finance, Sri Mulyani.

“If there is a subsidy from the state, the state or the Ministry of Finance has fiscal space for that, Alhamdulillah. The fiscal policy is in the Ministry of Finance, we propose,” said Agus.

Previously, the government has prepared various ways to reduce carbon emissions, one of which is the use of electric vehicles. To support this ecosystem, the government will distribute subsidies for electric vehicle purchases in 2023.

This was confirmed by the Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut Binsar Pandjaitan.

Luhut said the government was discussing the amount of subsidy to be given to the public to buy electric vehicles. He stated that the amount of subsidy that will be disbursed is around Rp. 6 million specifically for subsidies for the purchase of electric motorbikes.

“Immediately we will launch electric cars with subsidies, for example, we are finalizing motorbikes. How many millions do we want to provide for motorbike subsidies? Maybe Rp. 6 million? In Thailand, maybe Rp. 7 million.” he said at the Welcoming Stronger Investment Post-Pandemic event, Tuesday (29/11/2022).

As with electric motorbikes, Luhut also said that the purchase of electric cars would receive subsidies. The aim is to reduce the purchase of fuel oil (BBM).

Luhut claims that the use of electric vehicles will encourage spending savings on transportation needs, especially for fuel.

“We still calculate that it will be more profitable to use electric motorbikes than fossil [fuel] motorbikes and cars,” he said.