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Government wants Rp 80 million electric car subsidy, Banggar DPR: nonsense!

Jakarta

Budget head or Parliament of the Republic of IndonesiaSaid Abdullah also responded to the government’s plan to provide grants for electric vehicles. According to Said, the plan makes no sense and needs to be reviewed.

It is known, according to the government plan, the purchase of electric cars will receive a subsidy of 80 million rupees, while electric motorcycles 8 million rupees. These calculations only apply to EVs that meet minimum TKDN requirements or local content.

According to Said, the subsidy plan is still unclear and confusing so far. For example, who benefits most from the policy? So what is the level of urgency for people?

“This (the IDR 80 million electric car subsidy) makes no sense at all. We are well aware that our transportation is still a mix-match between supply and consumption,” Said said via YouTube broadcast Squawk Box. CNBC Indonesiaquoted detikOto, Tuesday (20/12/2022).

Mercedes-Benz EQ electric car launched in Indonesia. Photo: Ari Saputra

“We have not yet received clarity on the Rs 80 million figure, and the Rs 40 million figure for our hybrid cars has not been clarified either,” he added.

Furthermore, Said underlined, to get to the stage of the subsidy for electric vehicles there are several stages to overcome. One of them is to present a more adequate infrastructure. That’s why, he asked, the government shouldn’t just focus on selling electric motorcycles.

“If the government suddenly announces the numbers (subsidies for electric vehicles), we too will be surprised. Don’t worry, this is only to the benefit of a handful of importers. It’s good that during this year the government organizes the infrastructure first, only in the second year will incentives be made,” he said.

Hyundai Ioniq 5.Hyundai Ioniq 5. Photo: doc. New Hyundai Sola

If the government is willing to rush subsidies for electric vehicles, then attention must be restricted to motorcycles only. Because, according to Said, two-wheeled vehicles are the most used means of transport by Indonesians

“Electric motorcycles are already affecting the livelihood of many people. So, the choice shouldn’t suddenly be (subsidy) electric cars or hybrid cars. To be honest, just prioritize (electric) motorcycles. Because the reach is still far away” he said.

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