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Ministry Releases Guideline for Electric Motorbike Purchase Assistance

March 22, 2023, 01.19 PM

JAKARTA, - The Industry Ministry has issued the Industry Ministerial Regulation No. 6/2023 as a guideline for the provision of government assistance for the purchase of electric motorbikes.

"To expedite the establishment of the electric vehicle ecosystem, the government has made a policy to assist with the purchase of two-wheeled electric vehicles (EVs), which has taken effect since March 20, 2023," Industry Minister Agus Gumiwang Kartasasmita said in a statement on Tuesday, March 21.

The assistance will be disbursed as a 7-million rupiah ($455.21) discount on the purchase of each two-wheeled battery-based EV, he said.

The implementation of the program will be supported by an independent verification agency since the discount will only be given to certain beneficiaries, he said.

Also readElectric Vehicle Battery Production in Indonesia Expected to Start Next Year

To be eligible for the assistance, people will need to be registered as beneficiaries of people's business credit (KUR), productive assistance for micro-enterprises, wage subsidy assistance, and electricity subsidies for households with up to 900 volt-ampere (VA) connections.

"The assistance program will be provided for a maximum of 200,000 units for the 2023 fiscal year and a maximum of 600,000 units for the 2024 fiscal year," the minister said.

The ministry’s director general of metal, machinery, transportation equipment, and electronics (ILMATE) Taufiek Bawazier said that the aid will be provided only for the variants of vehicles registered on the Information System for Assistance in Purchasing Two-Wheeled Electric Vehicles (SISAPIRa).

The vehicles, which will be registered on the system, will need to meet the minimum domestic component level (TKDN) of 40 percent, following the ministry’s requirements.

The director general said the system can be accessed by EV industry players on starting on March 20.

Also readIndonesia, South Korea’s LG Group Sign Electric Vehicle Battery MOU Worth $9.8 Billion

“The participation [of the EV industry players] in this assistance program is valid until the 2024 fiscal year," he added.

According to the Industry Ministerial Regulation No. 6/2023, EV industry players registered as participants of the program will not be allowed to increase their sale prices.

They will also not be allowed to change the components of their products if that results in a decrease in the TKDN value to less than the required level.

"The companies that violate these rules will be given administrative sanctions, namely the revocation of their participation in this assistance program," Taufiek added.

Source: State News Antara

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