Jakarta, The Indonesia Post – Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the accelerated adoption of electric vehicles is expected to reduce the consumption of conventional fuel oil (BBM), which currently reaches nearly 70 billion liters/year.
Therefore, Luhut said the government would increase the market share of electric vehicles in the country by up to 10 percent by providing incentives to buy and convert electric motors and reduce taxes for electric cars.
“We continue to push for electric vehicles (EV). In 2023-2024, we will push for a 10 percent market share for EVs and electric motorbikes. That way we can reduce emissions and import fuel,” he said at the Mandiri Investment Forum (MIF) 2023 which is monitored online in Jakarta, Wednesday.
In his presentation, in 2021 it was recorded that the number of conventional motorbikes would reach 118 million units with sales of 6.5 million units/year and fuel consumption reaching 35.9 billion liters/year.
Meanwhile, the number of conventional cars will reach 23 million units in 2021 with sales of around 1 million units/year and fuel consumption of 34 billion liters/year.
“Fuel consumption reaches 70 billion liters a year. Can you imagine this figure. So if we push 10 percent (electric vehicles), we will be able to reduce fuel consumption,” he said.
To achieve 10 percent market share, sales of electric vehicles must reach around 600 thousand units for electric motorcycles and around 100 thousand units for electric cars.
Luhut also said the government would provide incentives for the purchase of electric motorbikes of IDR 7 million and a tax reduction for electric cars of around 10 percent. According to him, this figure is equivalent to the incentives offered by Thailand so that the electric vehicle market share for their car sales reaches 10 percent.
“I think for motorbikes it will be around Rp. 7 million. And for cars maybe the tax reduction is around 10 percent. I said, don’t think about it too much, just keep it simple. Look at what happened in Thailand, in Vietnam. Just make adjustments so that it becomes competitive. Don’t look at it from interests personal but also global interests, regional interests,” he said.
Luhut said the government would continue to make efforts to accelerate the adoption of electric vehicles in the next five to 10 years.
He also said that this would also support the policy on the use of palm oil which is projected to be used as fuel in 2040-2045 later.
“We will produce 100 thousand tons of palm oil per year in 2040-2045, of which 30 percent will be used for food and 70 percent will be energy. This will also reduce or maybe we will no longer import energy from any country. That will make Indonesia is increasingly sovereign,” he said. (mhn/bbs)
Comment