Distribution of Electric Motorbike Subsidies Not Yet Optimal
Public interest in the subsidy program of Rp. 7 million for the purchase of electric motorbikes or converting them to electrics is still low. The government invites the public to take advantage of the program.
By
WILLY MEDI CHRISTIAN NABABAN
·4 minutes read
YOSEPHA DEBRINA RATIH PUSPARISA
Electric motorcycle with the Volta brand type 401 Lite on display at the Roxy Mas outlet, Jakarta, Wednesday (8/3/2023). This product sells for IDR 11.8 million.
JAKARTA, KOMPAS — PT Surveyor Indonesia, the company appointed to verify subsidies for electric motorcycles, said that as of Wednesday (17/5/2023), there were only 114 new buyers of electric motorcycles and 200 people who intended to convert their fossil fuel-powered motorcycles. These figures are still far from the government’s target to provide subsidies for purchasing 200,000 electric motorcycles and for converting 500,000 fossil fuel motorcycles by this year.
Speaking during a media briefing on the implementation of government assistance for battery-powered electric motorcycles on Wednesday (17/5/2023) in Jakarta, Surveyor Indonesia commercial director Saifuddin Wijaya said the electric motorcycle subsidy program had been in effect since 10 March 2023, though in fact, it was scheduled for implementation on 20 March 2023.
To date, however, only 114 out of the targeted 200,000 buyers had registered as recipients of the Rp 7 million (US$480) subsidy per electric motorcycle.
"There are a number of problems in the distribution of the subsidy that has been in force since 10 May, including the process of verifying the factories of electric motorcycle manufacturers and adaptation by dealers [sellers]," said Saifuddin.
There are four criteria for people to be eligible for the purchase subsidy for electric motorcycles, namely the must be recipients of the microcredit program (KUR), direct cash assistance (BLT) for micro, small and medium enterprises (MSMEs), wage subsidies (BSU) and electricity subsidies, or be electricity customers in categories below 900 volt-amperes (VA).
In order to obtain the subsidy, buyers of electric motorcycles need only show their ID card (KTP). After that, the sales representative will verify their identity number (NIK) with the data for electric motorcycle subsidy recipients. If the buyers are eligible for the subsidy, they simply need to fill in other data, such as their home address and telephone number.
Currently there are 10 electric motorcycle producers that comply with the 40 percent local content requirement (TKDN). There are 18 brands of electric motorcycles available for the subsidy program. Meanwhile, there are 216 verified dealers and around 100 others still waiting for their verification results.
ADRYAN YOGA PARAMADWYA
A mechanic checks a motorcycle battery that has been converted to an electric motorbike at the Spora EV workshop, North Serpong, South Tangerang, Thursday (23/3/2023). A total of 21 workshops have been certified by the Ministry of Transportation to carry out the program to convert fuel-based motorbikes to electric motorbikes.
Devi Laksmi, coordinator of energy conservation business development at the Energy and Mineral Resources Ministry, said only 200 people had converted their fossil fuel motorcycles into electric motorcycles. This figure was still far from the 50,000 motorcycles targeted by the government for 2023.
"Of the 200 people, the majority comes from Jakarta. In order to reach the target, massive dissemination of the subsidy program must be conducted for the public and related parties,” she said.
In addition, holding exhibitions, seminars and other activities would also help to promote the subsidy program. According to Devi, the challenge in converting conventional motorcycles to electric motorcycles lay in convincing the public. Therefore, the conversion workshops that were available must be reliable and be verified up to technical implementation.
Currently, only six workshops are registered on the digital platform of the Energy and Mineral Resources Ministry. Other providers, totaling 16 workshops, are still in the process of being listed on the digital platform.
These workshops are only available in South Jakarta, Central Jakarta, and Denpasar (Bali), as well as Cirebon and Bogor regencies (West Java). Official workshop data can be viewed at ebtke.esdm.go.id/konversi/bengkel-rekanan.
Meanwhile, PT Pertamina Patra Niaga corporate secretary Irto Ginting said the company had provided 20 battery swapping stations to support infrastructure development for the electric vehicle ecosystem. Of that number, 14 stations were located in Jakarta, Bogor, Depok, Tangerang, Bekasi (Jabodetabek; Greater Jakarta), while the six others were in Bali.
With the government subsidy of Rp 7 million, consumers will bear the remaining cost of Rp 10 million.
"Hopefully, more infrastructure facilities for the electric vehicle ecosystem can be developed," he said.
When asked about the infrastructure for electric motorcycles outside Jabodetabek and Bali, Irto said Pertamina Patra Niaga would consider this, but he did not elaborate further.
The government launched the electric motorcycle subsidy program to double the number of electric vehicles and encourage people to convert their fossil fuel vehicles. This would help Indonesia lessen its dependence on imported fuel.
As for vehicle conversion, the number of workshops will continue to be increased toward reaching the target of converting 1 million motorcycles per year by 2025. Under Energy and Mineral Resources Ministry Regulation No. 3/2023 on general guidelines for government assistance in the fuel fossil to battery-powered electric motorcycle conversion program, the cost of conversion is set at Rp 17 million per motorcycle. With the government subsidy of Rp 7 million, consumers will bear the remaining cost of Rp 10 million.
This article was translated by Hendarsyah Tarmizi.
