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Luhut Outspoken About Electric Vehicle Subsidies Early March


Firda DwiCNBC Indonesia

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Monday, 20/02/2023 20:25 WIB




Photo: Esemka Bima EV and Esemka Bima 1.3 electric cars at IIMS 2023. (CNBC Indonesia/Tri Susilo)


Jakarta, CNBC Indonesia The Coordinating Minister for Maritime Affairs and Investment (Kemenko Marves), Luhut Binsar Pandjaitan, has just invited a number of ministers to discuss the continuation of the subsidy plan for electric vehicles. The meeting agreed that subsidies for electric vehicles would begin to be disbursed in March 2023.

Luhut said that the President of the Republic of Indonesia, Joko Widodo, had directed that subsidies for electric vehicles in Indonesia be given immediately. According to the plan, he said, the subsidy would begin to be given in the first week of March 2023.

“Earlier we had a meeting, the President already gave directions, it remains only for the Ministry of Finance to formulate it. We hope that the first week of March will come out (subsidies),” Luhut said when met at the Coordinating Ministry for Maritime Affairs and Fisheries Building after the meeting, Monday (20/2/2023).


He added that subsidies for electric vehicles in Indonesia must be more competitive than Thailand. Luhut claimed that this was a directive from President Jokowi.

“The amount we have to be competitive against Thailand. So the president gave that direction,” he concluded.

On the other hand, the Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif said that subsidies for electric vehicles would start in March 2023.

Arifin said what is certain is that an electric motorbike subsidy will be given in the amount of Rp. 7 million per unit. It is also stated that it will start running in March 2023.

“Regarding the implementation for electric vehicles, what was discussed, our plan is to get going in March,” when asked about the issue of discussion at a coordination meeting at the Coordinating Ministry for Maritime Affairs and Fisheries Building, Monday (20/02/2023).

Unfortunately, Arifin has not mentioned in what form the subsidy for four-wheeled electric vehicles will take place. But what is certain, subsidies for four-wheeled electric vehicles are not in the form of money.

“Four wheels are not a form of money,” said Arifin.

In addition, the Minister of Transportation of the Republic of Indonesia, Budi Karya Sumadi, revealed that in order to support the availability of workshops for the conversion of two-wheeled electric vehicles, his party will provide up to a thousand workshops for convertible motorbikes throughout Indonesia.

Budi said that the workshop would first go through a certification process so that it was trusted in converting conventional motorbikes into electric motorbikes.

“But the workshops must be certified. We agree that there are at least a thousand workshops throughout Indonesia,” Budi said when met at the Coordinating Ministry for Maritime Affairs and Investment building, after a meeting with several ministers, Monday (20/2/2023).

For your information, a number of ministers including the Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut Binsar Pandjaitan, Minister of Energy and Mineral Resources (ESDM), and Minister of Transportation (Menhub), Budi Karya Sumadi, gathered at the Kemenko Marves office this afternoon.


(hsy/hsy)


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