Indonesia Pushes for the Development of Electric Vehicles to Achieve Green Economic Transformation

INTI,- Indonesia's government is continuing to push for the acceleration of the formation of an Electric Vehicle Battery-Based Motor Vehicle Ecosystem (KBLBB) to encourage a change in people's behavior towards using environmentally friendly vehicles. The initiative aims to reduce the use of fossil fuels, save foreign exchange and reduce CO2 emissions. Efforts to accelerate the development of the KBLBB ecosystem are being made through the provision of incentives to buyers of electric motorcycles, cars, and buses.

The policy for developing the ecosystem is being carried out through an approach to increasing competitiveness and resource downstreaming, as well as opening up investment opportunities in electric vehicles, while expanding job opportunities throughout the industry supply chain," said Ministry of Industry spokesperson Febri Hendri Antoni Arif in Jakarta on Wednesday (10/5). The development of the electric vehicle ecosystem aims to produce 30% of the vehicle population by 2030.

Febri Hendri explained that the acceleration of the formation of the ecosystem is being carried out through incentives to ensure that Indonesia remains competitive with rival countries in attracting electric vehicle manufacturers. For example, the Chinese government provides incentives equivalent to Rp150 million for electric cars, while India provides incentives equivalent to Rp28 million for electric cars and Rp4.2 million for electric motorcycles. Meanwhile, Thailand, Indonesia's competitor, provides incentives of Rp63 million for electric cars and Rp7.6 million for electric motorcycles. Similar incentives are also being offered by the United States and Europe. "President Jokowi has instructed that in order to attract investment in electric vehicles, Indonesia must offer incentives similar to those provided by rival countries. The Electric Vehicle Era is inevitable and must be optimally prepared for, so that the use of electric vehicles in the form of motorcycles, cars, or buses in Indonesia can proceed rapidly," emphasized Febri Hendri.

The Ministry of Industry has issued Regulation Number 6 of 2023 concerning Guidelines for Government Assistance for the Purchase of Battery-Based Electric Two-Wheeled Motor Vehicles (KBLBB), which was announced on March 20, 2023. The program will be given in the form of a price discount of Rp7 million per unit of KBLBB Two-Wheeled Motors, which have a minimum TKDN of 40%, with a quota of 200,000 units in 2023.

"There are 10 companies and 18 models of vehicles that have obtained TKDN certification of over 40% and have registered and are in the verification process at sisapira.id. In addition, seven companies and 14 models have been designated as participants in the government's purchase assistance," said Febri.

The models include Agats, Emax (Juara Bike); Zuzu, Tempur (Smoot); PEV30M Polytron (Hartono Isman Teknologi); S9, X5 (Artas Rakata), Alva One ACC-BN A/T (Electra); SCOOD, AERO, VP (Greentech), and UNITED T1800 A/T, TX3000 A/T, TX1800 A/T (Terang Dunia Internusa).

Febri emphasized that the Ministry, along with the Independent Verification Institution (LVI) and the Electric Motorcycle Industry Association (AISMOLI), will provide assistance to the industry in registering at sisapira.id. "It is hoped that the number of designated models and dealers will continue to increase," he added. ***. Hans