Home » Business » Why the Electric Motorbike Subsidy Program Fails to Gain Interest: Insights and Solutions

Why the Electric Motorbike Subsidy Program Fails to Gain Interest: Insights and Solutions

Jakarta

The government wants to evaluate the electric motorbike subsidy program because it is less attractive to the public. The subsidy provided by the government is a discount of IDR 7 million per motorbike unit.

What causes the program to be empty of fans?

For information, this electric motorbike subsidy is intended for lower-class beneficiaries, such as those who are registered as recipients of government assistance

Executive Director of the Center for Reform on Economics (CORE) Indonesia, Mohammad Faisal, said that the subsidy program was intended for the poor. However, in the context of buying electric motorbikes, the poor are considered not to think too much about buying electric motorbikes.

“If the beneficiaries are poor social assistance recipients, it’s because they don’t have enough purchasing power. What’s more, electric motorbikes that have been subsidized could still be more expensive,” he told detikcomSaturday (15/7/2023).

This means, according to him, there is no match between the purchasing power of the people who are the target of the program and the hope to make these consumers buy electric motorbikes.

“So if the poor are here they are very, very sensitive to price. This means that even with conventional motorbikes it is still difficult to buy, (what’s more) if the electric motorbike is more expensive,” he explained.

Contacted separately, the Executive Director of the Institute for Development of Economics and Finance (INDEF), Tauhid Ahmad said that poor people rarely think about buying a new motorbike. This program lacks interest because the target community’s interest in buying motorbikes is low, especially if it is still relatively expensive.

“The habit of the poor people is to take used conventional ones. If they are pushed to buy new ones, I think it’s hard for them. They also pay cash too. If it’s in cash, it’s hard for them, there’s already a discount of Rp. 7 million, electric motorbikes nowadays are high quality rather expensive already tens of millions,” he said.

The second problem is low public literacy regarding the electric motorbike subsidy program. Tauhid said that not all of the lower class people understand the benefits of the electric motorbike itself. What’s more, usually they only know more about well-known conventional motorbike brands.

Then, the supporting infrastructure for electric motorbikes has not yet expanded. The obstacle that will be faced by the community is when the motorbike needs service or it is damaged and you have to replace the battery.

“For the poor, they want service, for example if it’s broken, but the service center is far away, who wants to buy that? Or earlier regarding charging the battery, it’s also hard to get,” he concluded.

Then what is the solution so that the electric motorbike subsidy is not empty of enthusiasts? Read on the next page.

(there/das)

2023-07-15 23:00:04
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