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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