Today marks the beginning of a brand-new subsidy program that will be implemented in Indonesia to encourage more people to purchase electric vehicles.
The program will offer eligible purchasers of new electric motorcycles or scooters a subsidy of seven million rupiahs (RM2,040), with the total number of units qualified for the subsidy capped at 200,000.
Extensive government subsidies
An identical amount is also being provided to 50,000 customers who convert their motorcycles or scooters powered by internal combustion engines to ones powered solely by electricity.
Consumers will be required to bring their road-worthy motorcycles or scooters with engine capacities of between 110 cc and 150 cc to conversion workshops that have been certified by the local transport ministry, along with any pertinent documentation, in order to qualify for the program.
In addition to subsidies for two-wheelers, there will also be subsidies for purchasing electric cars and buses.
The government has announced that in addition to the 250,000 electric motorcycles and scooters that will be subsidized this year, they will also subsidize the purchase of up to 35,900 electric cars and 138 electric buses. The exact amount of the subsidies has yet to be disclosed.
Subsidy qualification
Paultan.org reports that the overall necessity for these subsidies is that in order to qualify, a vehicle must have been produced in Indonesia, with at least forty percent of its components sourced from the country.
There is no doubt that the purpose of this is to encourage a greater number of companies to establish electric vehicle assembly plants in the surrounding area.
According to Nikkei Asia, the Hyundai Ioniq 5 and the Wuling Air EV meet this requirement because they are manufactured in the country. Two-wheelers manufactured by Gesits, Volta, and Selis also meet the threshold.
See Also
- Mitsubishi plans to start Minicab-MiEV Kei Van production in Indonesia by 2024
- Tesla to finalize planning for a plant in Indonesia
- Tesla, BYD to invest in EV production plants in Indonesia
- Indonesia plans to offer a subsidy program worth $320m to promote EV uptake in 2023
- Indonesia announces plans to offer $5,000 subsidy on electric car sales
