Minister Discuss Incentives for Electric Vehicles

TEMPO.CO, Jakarta – The Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif attended an inter-ministerial meeting at the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) to finalize the plan in providing incentives for electric vehicles on Monday, January 30, 2023.

Secretary General of the Ministry of Energy and Mineral Resources, Rida Mulyana, conveyed the plan during a press conference on the 2022 ESDM sector Achievements and 2023 Work Program at the Ministry of Energy and Mineral Resources. “The meeting is led by Pak Luhut to ensure everything runs accordingly and will be announced to the public momentarily,” said Rida.

Rida stated that the incentive distribution of electric vehicles is planned to be implemented by the Ministry of Industry with the fund provided by the Ministry of Finance. Meanwhile, the Ministry of ESDM will convert conventional vehicles into electric vehicles.

“The details are being finalized so that in time it will make it easier for incentive recipients. Because this money is from the people, thus, we have to be careful,” said Rida.

The Minister of Finance, Sri Mulyani Indrawati, previously said that the government’s discussion on electric vehicle incentives had almost been completed. Although she has not yet specified the nominal amount, according to Mulyani, the government has already designed the number of incentives to be distributed and people in power to use the budget.

“The finalization is being conducted. as I have said on several occasions, if there are new incentives, especially utilizing the state budget, we must consult with the DPR [House of Representatives] because they have the budgetary rights,” said Sri Mulyani to reporters at the Cikarang Dry Port, Bekasi, West Java on Friday, January 27, 2023.

As a state finance manager, Sri Mulyani said that her ministry had had to notify the DPR that there would be a new post for budgeting.

Meanwhile, the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, said that the regulations regarding the number of incentives for electric vehicles would be issued in early February 2023.

At the 2023 Saratoga Investment Summit in Jakarta, Luhut emphasized that this effort was to accelerate the adoption of battery-based electric motorized vehicles (KBLBB) or electric vehicles (EV).

“We finalized [regarding KBLBB] at the limited meeting yesterday, next week the Ministerial Regulation should be issued from the Ministry of Finance regarding subsidy and so on. Hopefully next week, early February. Around Rp7 million were approximately meant for the new electric motorbike and later it will be announced, the vehicle will be prioritized for middle-class citizens,” said Luhut in a statement in Jakarta, Thursday, January 26, 2023, as quoted from Antara.


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