Electric Motorcycle Subsidies Worth US$455 Million to Be Offered as Financing Incentives for Indonesians
Dadan Kusdiana, secretary general of the Ministry of Energy and Mineral Resources, said the Indonesian government has prepared US$455 million as electric motorcycle subsidies in an effort to encourage the purchase and utilisation of the two-wheeled EVs.
The minister further stated that the electric motorcycle subsidies will cover the conversion of 200,000 combustion motorcycles and the purchase of 800,000 new electric motorcycles. The statement was part of his speech at the IEA’s 9th Annual Global Conference on Energy Efficiency in Nairobi, Kenya, on 22 May 2024.
Kusdiana drew attention to the difference in cost between electric and conventional cars. He noted that the government is offering tax breaks and subsidies for electric, hybrid, and electric motorcycles in an effort to reduce the price difference.
On that occasion, he mentioned that by 2030, the Indonesian government intended to have two million electric cars and thirteen million electric two-wheeled vehicles on the road.
He stated that the Ministry of Energy and Mineral Resources is still working to speed up supporting infrastructure development for the electric vehicle ecosystem.
Kusdiana stated that the government is increasing the number of public electric vehicle charging stations (SPKLUs) to support the electric car ecosystem. To meet demand, 32 thousand SPKLUs are projected to be ready by 2030.
Incentives Being Created for Houses
Besides installing public charging stations, the Indonesian government deems home charging to be crucial to bolstering the EV environment. The state-owned energy provider PT PLN provides incentives to help with it, including discounted overnight charging rates and special pricing for upgrading electrical systems.
These actions aim to promote the general public’s use of electric vehicles by lowering the cost and increasing the convenience of charging.
The Indonesian government recognises the vital impact of road transport on CO2 emissions. To decrease emissions in the short and medium term, it has developed fuel-saving regulations for heavy vehicles.
According to Kusdiana, the government has earmarked 11.8 million tonnes of biodiesel to cut transportation emissions by 2024 and launched B35, a biodiesel mix containing 35% palm oil.
He stated that this programme can cut greenhouse gas emissions by 34.9 million tonnes of CO2.
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