Jakarta (ANTARA) - Incentive support, both fiscal and non-fiscal, is needed to accelerate the development of the electric vehicle (EV) ecosystem, according to a member of Commission VII of the House of Representatives (DPR) Dyah Roro Esti.

"The acceleration of the electric vehicle ecosystem is one of the main things for Indonesia for reducing total carbon emissions as well as for achieving the net-zero emission (NZE) target," she said in a statement issued here on Wednesday.

According to her, electric vehicles have been regulated through several regulations, including Presidential Regulation Number 55 of 2019 regarding the acceleration of the Battery-Based Electric Vehicle Program.

As per the regulation, the provision of incentives is key for the development of the EV ecosystem in the country, she added.

She affirmed that her side fully supports the government's efforts to formulate a policy regarding the provision of incentives for EVs to accelerate the development of the EV ecosystem in Indonesia.

Currently, the government is designing a policy regarding an incentive mechanism for people who purchase EVs, with a total incentive value of Rp5 trillion.

Through the Ministry of Industry, the incentive will be distributed to the community via four schemes: Rp80 million will be provided to people buying electric cars, Rp40 million to those purchasing hybrid-based electric cars, Rp8 million for two-wheeled vehicles, and Rp5 million for motorcycles that are converted into electric motorcycles.

"Considering that the majority of Indonesians are not interested in electric vehicles, which are basically more environmentally friendly, incentives from the government are needed. Meanwhile, the price of electric cars is now 30 percent more expensive than conventional cars," the legislator explained.

In addition, she noted that the use of EVs could help save costs by four times compared to gasoline cars.

"In terms of fuel consumption, the use of electric vehicles can potentially reduce fuel imports by up to 30 million barrels per year, which is very good for reducing our dependence on fossil energy and emission reduction," she explained.

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Translator: Kelik Dewanto, Raka Adji
Editor: Azis Kurmala
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