The Government Will Soon Announce Electric Vehicle Incentive Regulations

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 Coordinating Minister for Economic Affairs, Airlangga Hartarto, has announced that the government will be issuing regulations soon to incentivize the purchase of electric vehicle in Indonesia.

This move comes as part of the country’s efforts to develop the electrification market in the region, with the goal of reaching a minimum of 20% or 400,000 electric cars by 2025.

During the “Economic Outlook 2023” event, with the theme “Maintaining Economic Momentum amid Uncertainty,” Airlangga stated that the government will provide an incentive of IDR 7 million for the purchase of new or converted electric motorcycles. The subsidy will be available to all Indonesian citizens, regardless of their income level.

In addition to electric motorcycles, the government is also discussing incentives for electric cars, which are planned to be IDR 80 million.

This incentive is being considered in response to Thailand’s incentive program, and Airlangga emphasized the importance of maintaining competitiveness in the region.

The Ministry of Energy and Mineral Resources, Arifin Tasrif, and the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, have also stated that electric vehicle incentives, particularly for electric motorcycles, will be implemented in March 2023.

The Presidential Chief of Staff, Moeldoko, has confirmed that the government has changed the electric car subsidy scheme from a discount of IDR 80 million to a tax adjustment.

Moeldoko has met with several ministries to discuss electric car subsidies in Indonesia and has invited various automotive brands in the country to provide input and opinions.

The government is also reportedly preparing a subsidy budget of IDR 5 trillion, which will be distributed not only for electric cars but also for electric buses and motorcycles.

The subsidy is intended to help accelerate the transition to electric vehicles and to promote a cleaner and more sustainable transportation system in Indonesia.

By making it more affordable for citizens to purchase electric vehicles, the government hopes to increase the adoption of this technology and help reduce greenhouse gas emissions.