"We will periodically carry out evaluation for two government incentives, aid from government. The first is for motorbikes. The second for cars," he said after a discussion with the Indonesian Chamber of Commerce and Industry (Kadin) and some vehicle associations at Kadin's office here on Wednesday.
The government is offering a tax incentive for 35,900 electric cars that fulfill the criteria of a domestic component rate of 40 percent, he informed.
Buyers will only need to pay 1 percent of the value-added tax, he said.
The government is also providing Rp7 million (US$468) in subsidy for the purchase of 200 thousand units of electric motorbikes with a domestic component rate of at least 40 percent, Moeldoko added.
The subsidy is aimed at people who are listed as beneficiaries for people's business credit, aid for micro businesses, salary subsidy, and/or electricity subsidy of up to 900 VA, he elaborated.
He cited data from Sisapira (Electric Two-Wheeled Purchases Information System), which has pegged the available quota of electric motorbikes as of June 2023 at 199,196.
"What we are (questioning) is why (this has happened even though) the government aid sets those four things as requirements, it has still garnered so little (interest). This is why we are constantly pushing for evaluation, (we are trying to ascertain if) this is related to long restitution, or whatever," he said.
He further said that his administration will hold a meeting with Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, on Wednesday to discuss the government's EV subsidy.
He opined that people's lack of interest in EVs is linked to some issues, such as those related to the availability of battery components and the limited number of recharging stations.
Hence, on Wednesday, representing the National Electric Vehicle Industry Association (Periklindo), his administration held a discussion with other associations and Kadin to seek solutions.
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Translator: Rizka Khaerunnisa, Mecca Yumna
Editor: Sri Haryati
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