Some manufacturers told us that after the government (decided to) provide assistance for (prospective consumers to) make purchases, they will increase their domestic components to 40 percent at minimumJakarta (ANTARA) - With the government announcing an incentive of Rp7 million (US$455) for electric motorbike purchases, some manufacturers are intending to increase their domestic component level to 40 percent at least, the Industry Ministry has informed.
"Some manufacturers told us that after the government (decided to) provide assistance for (prospective consumers to) make purchases, they will increase their domestic components to 40 percent at minimum," Industry Minister Agus Gumiwang Kartasasmita said at the Presidential Palace here on Tuesday.
Currently, three manufacturers are eligible for the Rp7 million government subsidy—Gesits, Volta, and Selis, the minister elaborated.
He, however, did not divulge the names of other manufacturers who have expressed similar commitments. He only said that some manufacturers are pursuing efforts to increase the domestic component level.
"I cannot tell (you), but it is all an ongoing process," he added.
He further said that micro, small, and medium enterprises (MSMEs) are being prioritized under the incentive policy.
"This is to promote productivity in practice," he explained.
He said he expected the subsidy to push up the production or sales rate so that at least 200 thousand electric motorbikes will be manufactured and 50 thousand bikes converted from conventional to electric ones.
The government will also assist prospective consumers who are keen to buy electric cars, the minister said. However, he did not disclose the specifics of the said assistance.
"As for four-wheeled ones, it has been decided that there will be assistance for that. Ask Finance Minister (for the details),” Kartasasmita added.
He said he believes that the incentive for electric vehicle purchases will attract investors, which, in turn, will help develop the electric vehicle ecosystem. With investment coming in, new jobs will be generated.
The electric motorbike purchase incentive program is set to come into effect from March 20, 2023. The guidelines and technical aspects of the programs are being formulated by the Industry Ministry and the Energy and Mineral Resources Ministry.
The Industry Ministry has proposed the government subsidy for the purchase of 200,000 units of electric motorbikes, 35,900 electric cars, and 138 electric buses. The policy will end in December 2023.
Related news: Ministry holds fossil-fuelled bike conversion training for MSMEs
Related news: Ministry details provisions on electric bike conversion assistance
Translator: Indra A P, Mecca Yumna
Editor: Rahmad Nasution
Copyright © ANTARA 2023
