Indonesia launches new EV subsidy scheme covering 250,000 new e-bikes, conversions; 39,500 electric cars

Indonesia launches new EV subsidy scheme covering 250,000 new e-bikes, conversions; 39,500 electric cars

Indonesia today launched a new subsidy programme aimed at boosting the adoption of electric vehicles in the country. Under the scheme, a subsidy of seven million rupiah (RM2,040) will be provided to eligible buyers of new electric motorcycles/scooters, limited to 200,000 units.

The same amount is also being offered to 50,000 consumers who convert their internal combustion engine motorcycles/scooters to run purely on electricity. To qualify, consumers will need to bring their roadworthy motorcycles/scooters with engine capacities of between 110 cc and 150 cc to conversion workshops certified by the local transport ministry, along with relevant documentation.

Besides two-wheelers, subsidies will also be given for each electric car and bus purchase. In addition to subsidies for 250,000 electric motorcycles/scooters this year, the government will also subsidise purchases of up to 35,900 electric cars and 138 electric buses, although it wasn’t revealed how much the subsidies will be.

The overarching requirement for these subsidies is that only vehicle manufactured in Indonesia using at least 40% local content will be eligible. This is undoubtedly aimed at attracting more companies to set up local EV assembly plants.

At present, the Hyundai Ioniq 5 and Wuling Air EV meet this requirement as they are produced in the country, while two-wheelers from Gesits, Volta and Selis also meet the threshold, according to Nikkei Asia.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Putri on Mar 20, 2023 at 12:37 pm

    Conversion can get 10 years warranty?

    Like or Dislike: Thumb up 1 Thumb down 0
    • Rakyat Malaysia on Mar 21, 2023 at 7:03 pm

      Previously we were heading in the right direction under Azminkor but now with new Gomen we are heading to the sewer to play with their rats. Malaysia wasted the chance. Sigh..

      Like or Dislike: Thumb up 0 Thumb down 1
  • Mike Tee on Mar 20, 2023 at 12:38 pm

    EV as it stands in MY has an image problem with only expensive choices. All I see on PT is “EV is toy for the rich”

    When Chinese EVs make inroads to our market in years to come, the tipping point will come with price, range and charging infrastructure.

    I especially look forward to battery swapping that solves all the perceived problems in a single swoop. Off grid charging, charging times (takes <5 mins), battery tech being obsolete (you don't own the battery or *one* battery, battery degradation (self explanatory) and high initial purchase price (Battery as a service or subscription based model). You can still charge the battery yourself.

    Some people will die on the ICE hill, that is fine but in 7 years (2030) there will be no more ICE cars available for sale in the UK, EV is coming whether you like it or not

    Like or Dislike: Thumb up 2 Thumb down 8
    • Piplup on Mar 20, 2023 at 1:14 pm

      Even indonesian embrace new things and changes. While Malaysian always stuck with old mindset and resale value, no wonder our country can’t advance further

      Like or Dislike: Thumb up 10 Thumb down 0
    • EV Car on Mar 20, 2023 at 2:09 pm

      Gov waiting for Proton and Perdu’ to be ready with their EV cars and infra.. then there will be a mad rush on the new EV laws, taxes and what not !!!

      Like or Dislike: Thumb up 3 Thumb down 0
    • Mike Tee on Mar 20, 2023 at 5:15 pm

      Two dislikes from those who will die on the ICE hill. Haha

      I forgot to add early EV adopters are paying for

      1) Higher price
      2) Inferior battery
      3) Inferior motor
      4)High depreciation

      We are the chicken (EV volume) that will hatch the egg (charging infrastructure). Your RM150,000 EV in 2028 will be superior in ways that matter (range, speed, battery, cost/performance) to a RM400,000 EV in 2023.

      Like or Dislike: Thumb up 0 Thumb down 2
  • Faisal on Mar 20, 2023 at 4:20 pm

    Conversions? Malaysia should allow this too and let us have innovation from our workshops. Untapped market there methinks

    Like or Dislike: Thumb up 1 Thumb down 0
  • albag on Mar 21, 2023 at 10:52 am

    launch so what? in the end they still bakar hutan and cause annual haze carnival to neighbouring countries anyway

    Like or Dislike: Thumb up 2 Thumb down 0
  • Indog on Mar 22, 2023 at 9:11 pm

    News was just out monday night. EVs with 40% local components minimum will get 10% subsidy in form od price cut from MSRP. Only two cars eligible, Hyundai Ioniq 5 and Wuling Air EV. Cheapest Ioniq 5 will be at IDR 640 mil, and cheapest Air EV will be at 200 mil.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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