"Regarding the electric vehicle subsidy, other countries have implemented incentive programs for electric vehicles, among others, to boost the use of clean energy and to end dependence on fossil fuels," he said at a meeting with Commission VII of the House of Representatives (DPR), which was followed online from here.
Since the need for fuel oil has continued to increase and the purchase of motorcycles may reach 4–5 million units per year, the BEV program can help save costs spent on fuel oil, he noted.
Tasrif added that one of the efforts that are being made is converting fuel-powered vehicles into electric vehicles.
"Our country has a quite vast potential for renewable energy, which we can use to balance the demand on electricity," he said.
He further said that, apart from reducing emissions, the program can also save the country's foreign exchange and help owners of electric vehicles save costs.
Nevertheless, he said that the infrastructures needed to support the BEV program are not yet well-distributed in regions, for example, public electric vehicle charging stations (SPKLU).
He further said that his ministry would encourage SPKLU construction in remote areas, especially in areas where fuel oil is sold at high prices.
Earlier, on March 3, 2023, the government set a subsidy of Rp7 million per unit for each purchase of electric motorcycles, with the overall target set at 200 thousand new electric motorcycles.
Likewise, the subsidy for conversion from fuel motorcycles to electric vehicles was also set to be Rp7-million per unit and targeted 50 thousand motorcycles.
Meanwhile, the incentive for the purchase of electric cars has not been set. However, the government is planning to provide incentives for the purchase of 35,900 units of electric cars and 138 units of electric buses.
The government has also prepared the mechanism for the provision of incentives targeted at electric vehicle producers who have registered electric vehicles that meet the domestic component level (TKDN) of 40 percent.
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Translator: Benardy Ferdiansyah, Raka Adji
Editor: Rahmad Nasution
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