Moeldoko Reveals Plans to Remove Subsidies for Electric Motorbikes: CNN Indonesia

CNN Indonesia

Monday, 05 Jun 2023 19:22 WIB

Jakarta, CNN Indonesia —

Presidential Chief of Staff (KSP) Moeldoko reveals the government has the opportunity to delete electric motor subsidies for disadvantaged groups and open it to the general public. This discourse arose because the electric motorbike subsidy program was lacking in demand.

“We have opened this (electric motorbike subsidy), through the Sicipira application, it turns out that the development is not significant. The purchase of (electric) motorbikes is very slow. We are currently evaluating this. Are there any words for the subsidy because it requires 4 things? Is it necessary? the language is government assistance so that all of this can be used?” said Moeldoko in a discussion on the Ministry of Communication and Informatics (Kominfo) YouTube channel, Monday (5/6).

“Each has its pluses and minuses, political and public communication (government subsidies and assistance). So we are evaluating it,” he continued.

He detailed that currently the government is limiting the electric motorbike subsidy program to IDR 7 million with 4 criteria, namely for recipients of 450-900 VA electricity subsidies, small micro and medium enterprises (MSMEs) recipients of people’s business credit (KUR), recipients of micro business productive assistance (BPUM). ), and wage subsidy assistance.

In fact, Moeldoko said that the number of people interested in the electric motorbike subsidy program is still minimal. In fact, President Joko Widodo (Jokowi) has set a high realization target for the distribution of subsidies for 200 thousand units this year.

“The government’s desire to provide 200,000 subsidies for motorcycles so that they can be absorbed immediately, is still experiencing obstacles. Is it because it’s complicated for people to take care of, socialization is still lacking, and so on, so purchasing power is still low. Is it because banking leasing is still a bit sluggish?” Moeldoko said.

He alluded to the role of banking in making the private sector wait for the procurement of charging station facilities, aka Public Electric Vehicle Charging Stations (SPKLU). According to him, banks that do not provide assistance to customers to buy electric motorbikes will have an impact on the lack of available SPKLUs.

“The issue of availability of charging stations, the private sector is also waiting. If banks don’t provide strong support for leasing motorcycle buyers, it will be difficult for people to shift. This relates to how the private sector prepares SPKLU. If motorbikes are not massive, SPKLU too. Therefore, banks must provide strong support,” he hoped.

Moeldoko also highlighted Presidential Instruction Number 7 of 2022, in which Jokowi ordered all government agencies to change official cars to electric cars. According to him, this regulation shows the high demand for electric vehicles.

However, Moeldoko sees an anomaly occurring in the market. He said the industry ultimately waited for each other.

“With guarantees, mandatory, central government, regional government, TNI/Polri must move immediately. This is the first time in the business world, supply and demand is not balanced. Supply is slow, but demand is high. The government wants to replace vehicles immediately, but the goods are not yet fully available. ” explained Moeldoko.

“Presidential Decree No. 55 of 2019 and Presidential Instruction No. 7 of 2022 are guidelines from the central government for regional governments on how this is done in their respective work environments. Moreover, the stricter mandatory earlier, the Regional Government must implement, no longer allowed to bargain. The problem is availability, supply ready or not?” he said.

Previously, Moeldoko detailed that only 108 electric motorbikes had been sold in the government subsidy program. The data submitted by Moeldoko is as of Friday (19/5).

(skt/dzu)