REPUBLIKA.CO.ID, JAKARTA -- Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Dadan Kusdiana said Indonesia prepared a fund of 455 million U.S. dollars to subsidize the sale of electric motorcycles.

“The subsidy covers the sale of 800,000 new electric motorcycles and the conversion of 200,000 combustion engined motorcycles,” he said at the IEA's 9th Global Conference On Energy Efficiency (GCEE) in Nairobi, Kenya, quoted from an official statement in Jakarta on Thursday (23/5/2024).

He said there was a price gap between electric vehicles and conventional vehicles. To close the price disparity, the Indonesian government provides tax incentives and subsidies for electric cars, hybrid cars, and electric motorcycles.

On the occasion, Dadan said that the Indonesian government targets 2 million units of electric cars and 13 million units of two-wheeled electric vehicles on the road by 2030 to pave the roads.

For this reason, the Ministry of ESDM continues to accelerate the development of its supporting infrastructure, thus forming an ecosystem of electric vehicles.

In order to support the electric vehicle ecosystem, he added, the government continues to multiply the construction of electric vehicle charging stations (SPKLU). According to estimates, it will take 32 thousand SPKLU by 2030 to meet the growing demand.

In addition to the development of common charging stations, the availability of chargers in the home was assessed as equally important for creating a comprehensive charging infrastructure.

To facilitate charging at home, PT PLN offers incentives such as a special price for upgrading the electrical system and a reduced overnight charging rate. These measures are designed to encourage more residents to adopt electric vehicles by making charging convenient and cost-effective.

The Indonesian government also recognized the significant contribution of road transport to carbon dioxide emissions by developing fuel economy standards for heavy vehicles as the key to lowering emissions in the short and medium term.

“To further reduce transportation emissions, this year the government has allocated 11.8 million tons of biodiesel along with the launch of a 35 percent palm oil blend for biodiesel otherwise known as B35. The program could reduce GHG (Greenhouse Gas) emissions by about 34.9 million tons of CO2. The Indonesian government is very confident that a combination of regulation, information, and incentives can drive energy efficiency and mitigation measures in the transportation sector,” Dadan said.