Indonesia to Grant Subsidy for Electric Vehicle Sales Next Year

Indonesia to Grant Subsidy for Electric Vehicle Sales Next Year

TEMPO.CO, Jakarta – Transportation Minister Budi Karya Sumadi revealed that the government targeted to provide incentives in the form of subsidies for the purchase of electric vehicles in 2023.

“Inshallah, [we will give subsidies] next year,” said Budi Karya at Jakarta Fairmont Hotel, Wednesday, October 12, 2022.

Although the subsidy is targeted to be disbursed next year, Budi said the government is still working on determining the form of the incentives to be given.

According to him, the amount of the subsidy for the purchase of electric cars and motorbikes will be equivalent to the subsidy for fuel within a certain time. Thus, there will be a shift in the subsidy.

“Based on the calculations, the subsidy for motorcycle and car buyers for 3-4 years is equal to the fuel subsidy for 3-4 years,” said Budi Karya.

Energy and Mineral Resources (ESDM) Minister Arifin Tasrif had earlier stated that the government is working on a number of incentive packages to subsidize the purchase of electric vehicles in a bid to accelerate the transition from using fossil energy-based vehicles to domestic battery-powered vehicles.

“The mechanism is being designed. We are discussing it,” said Arifin when met at the ESDM Ministry Complex, Jakarta, on Friday, September 16, 2022, as quoted from Bisnis.com.

ARRIJAL RACHMAN

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