Indonesia Evaluates EV Incentive As Purchases Remain Low

JAKARTA, Jan 4 (NNN-ANTARA) – The Indonesian government has evaluated its electric vehicle (EV) incentive policy, as purchases remain low, reaching only 11,532 motorbikes or 5.7 percent of the target of 200,000 in 2023, said Industry Minister, Agus Gumiwang Kartasasmita, yesterday.

The government has provided 1.4 trillion rupiah (around 89 million U.S. dollars) for incentives to purchase electric motorbikes, starting in Mar, 2023, in efforts to shift from fossil to renewable energy, reduce pollution and pursue net zero emissions.

“One of the reasons is the quality of the battery, which should have a long duration, be easy and fast to charge, so battery standardisation is the key to the success of the electric car and motorbike programme,” said Kartasasmita.

Another reason is that, the requirements were complicated, and only intended for micro and small business owners, as well as, low-income families as indicated by electrical power installed in their homes of 900 VA or lower.

Since Oct, 2023, this requirement has been relaxed to only Indonesian citizens aged 17 years and over with an electronic ID. This policy immediately led to increased purchasing numbers, yet was unable to achieve the targets that had been set.

This year, the motorbike incentive target is only 50,000 units. Kartasasmita is confident that the goal can be reached, as the requirements have been relaxed and the policy has been better socialised.– NNN-ANTARA