Govt allocates US$455 million for electric motorcycle subsidies

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Jakarta (ANTARA) – Secretary General of the Ministry of Energy and Mineral Resources Dadan Kusdiana stated that the Indonesian government has readied funding of US$455 million to provide subsidies for the purchase of electric motorcycles.

“The subsidies will cover the purchase of 800,000 new electric motorcycles and the conversion of 200,000 combustion motorcycles,” he said in a statement from his ministry on Thursday.

He made the statement at the IEA 9th Annual Global Conference On Energy Efficiency in Nairobi, Kenya, on Wednesday (May 22).

Kusdiana highlighted a price gap between electric vehicles and conventional vehicles. To lower the price disparity, he said, the government is providing tax incentives and subsidies for electric cars, hybrid cars, and electric motorcycles.

On that occasion, he noted that the Indonesian government is targeting two million units of electric cars and 13 million units of electric two-wheeled vehicles to be operated on the roads by 2030.

The Ministry of Energy and Mineral Resources is continuing to accelerate the development of supporting infrastructures to build the electric vehicle ecosystem, he said.

To support the electric vehicle ecosystem, Kusdiana said, the government continues to increase the construction of public electric vehicle charging stations (SPKLUs). It is estimated that 32 thousand SPKLUs need to be available by 2030 to meet demands.

In addition to building charging stations, the availability of home charging is deemed important.

To facilitate it, state-owned electricity company PT PLN offers incentives, such as special prices for electrical system upgrades and discounts for overnight charging rates.

These measures are taken to encourage more people to use electric vehicles by making charging convenient and cost-effective.

The Indonesian government also acknowledges the significant contribution of road transport to CO2 emissions by developing fuel-saving standards for heavy vehicles as the key to reducing emissions in the short and medium term.

According to Kusdiana, to reduce transportation emissions, in 2024, the government has allocated 11.8 million tons of biodiesel along with the launch of a blend of 35 percent palm oil for biodiesel, known as B35.

He remarked that this program can reduce greenhouse gases by 34.9 million tons of CO2.

Translator: M Baqir, Raka Adji
Editor: Tia Mutiasari
Copyright © ANTARA 2024

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