Indonesia allocates $455 mln for electric motorcycle subsidies

Secretary-General of the Indonesian Ministry of Energy and Mineral Resources Dadan Kusdiana on Thursday said that the Indonesian government has approved a funding of $455 million to provide subsidies for the purchase of electric motorcycles.

According to Kusdiana, the financial package is part of the country’s policies to promote environmentally-friendly transport. The subsidies will cover the purchase of 800,000 new electric motorcycles and the conversion of 200,000 combustion motorcycles.

Kusdiana said the Indonesian government is providing tax incentives and subsidies for electric cars, hybrid cars, and electric motorcycles to step by step achieve the goal that 2 million units of electric cars and 13 million units of electric two-wheeled vehicles will operate on the roads in the country by 2030.

The Ministry of Energy and Mineral Resources is continuing to accelerate the development of supporting infrastructure to build the electric vehicle ecosystem, he said.

To support the ecosystem, Kusdiana said, the government continues to increase the construction of public electric vehicle charging stations (SPKLUs). It is estimated that 32,000 SPKLUs need to be available by 2030 to meet demands.

In addition to building charging stations, the availability of home charging is deemed important. To facilitate it, Indonesia’s state-owned electricity company PT PLN offers incentives, such as special prices for electrical system upgrades and discounts for overnight charging rates. These measures are taken to encourage more people to use electric vehicles by making charging convenient and cost-effective.

Kusdiana emphasised that the Indonesian government also acknowledges the significant contribution of road transport to CO2 emissions by developing fuel-saving standards for heavy vehicles as the key to reducing emissions in the short and medium terms.

Indonesia has allocated 11.8 million tonnes of biodiesel along with the launch of a blend of 35% palm oil for biodiesel (B35), he said, noting that the programme is an important step to reduce greenhouse gases and protect the environment. The programme can help reduce by 34.9 million tonnes of CO2.