Jakarta – Starting March 20, 2023, the government will provide assistance for the purchase of Battery-Based Electric Motorized Vehicles (KBLBB) as much as Rp. 7 million (USD 454) per unit for the purchase of 200,000 new electric motorbikes and Rp. 7 million (USD 454) per unit for the conversion of 50,000 units of conventional motorcycles with fossil fuels be an electric vehicle. The Ministry of Industry as the Budget User Authority for this program is preparing an assistance scheme for buying electric vehicles, so it is hoped that this policy will be right on target.
In a written statement, the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that this incentive policy is expected to increase the wider affordability of people’s purchasing power for electric vehicles. On the other hand, this program also aims to attract electric vehicle manufacturers to invest in the country. “The policy for assistance in purchasing electric vehicles will come into effect on March 20, 2023,” he said.
Based on Presidential Regulation No. 55 of 2019 concerning the Acceleration of the Battery-Based Electric Motor Vehicle Program, the KBLBB purchase program was driven by reasons of increasing the efficiency of energy security and energy conservation in the transportation sector, as well as achieving clean energy, clean air quality, and being environmentally friendly.
Pandjaitan said, the development of Indonesia’s natural resources to create an electric vehicle industry using critical minerals and a battery industry which is currently being built, will encourage the creation of new jobs, new technology, innovation, and increase state revenue.
The Minister of Industry Agus Gumiwang Kartasasmita added, domestic KBLBB producers registered the types of vehicles to be included in this program, provided they met the domestic component level (TKDN) of 40%. Then, the verification agency will verify the Vehicle Identification Number (VIN) adjusted to TKDN. Furthermore, data collection is carried out through dealership and coordination with the Association of State-Owned Banks regarding the verification process. After that, the bank makes a replacement payment to the producer.
Head of the Ministry of Finance’s Fiscal Policy Agency, Febrio Kacaribu, said that this government assistance was prioritised for Micro, Small, Medium Enterprises (MSMEs), especially recipients of Small Business Credit and Micro Business Productive Assistance , including 450-900 VA electricity customers. This is to encourage the productivity and efficiency of their business.
Secretary General of the Ministry of Energy and Mineral Resources Rida Mulyana said KBLBB users would be able to save IDR 2.77 million per year, while the government could save IDR 32.7 billion per year. In addition, it allows a reduction of 0.03 million tons of greenhouse gas effects, as well as an increase in employment. “Meanwhile, electricity consumption has increased by 15.2 GWh per year,” he said. (Hartatik)
Banner photo caption: Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif riding a converted electric motorcycle in Denpasar, Bali. 30 August 2022. (Hartatik)