Jakarta (ANTARA) - Minister of Industry Agus Gumiwang Kartasasmita has expressed the hope that the simplification of the requirement for receiving subsidies on electric motorbike purchases will push up their sales.
The minister has decided to reduce the number of conditions that need to be fulfilled for receiving the subsidy from four to just one: the subsidy applicant must have an identity card number (NIK).
"This simplification aims to boost public participation in increasing the number of electric motorbikes in Indonesia," he explained after attending a student orientation activity at a polytechnic in Jakarta on Tuesday.
Minister Kartasasmita outlined the simplified requirement in the Industry Minister's Regulation (Permenperin) No. 21 of 2023 on the revision of Permenperin No. 6 of 2023 regarding the guidelines for the distribution of government assistance for the purchase of two-wheeled battery-based electric vehicles (EVs).
Under the previous regulation, the government was only providing electric motorbike subsidies to micro, small, and medium enterprise (MSME) actors receiving smallholder business credit (KUR) assistance and productive aids (BPUM) as well as the recipients of 450VA–900VA electricity subsidies.
"We have simplified the requirements. The regulation has taken effect. One NIK for one electric motorbike, that simple," he highlighted.
The minister then expressed the hope that the new regulation will help the government distribute the subsidies to a broader population, thereby helping achieve its sales target of 200 thousand motorbikes by the end of this year.
"The value and quota of the incentive (subsidy) remain unchanged. We only made a revision to the requirements in the hopes of facilitating the public (in acquiring electric motorbikes), since our priority is to shoot up the number (of EVs)," he said.
The regulation stipulates that the subsidy will be disbursed in the form of a discount of Rp7 million (US$458) on the purchase of each electric motorbike.
Kartasasmita explained that the new regulation also aims to shift the mindset of the people regarding EVs.
To reach the sales target, he urged the manufacturers of EVs to take part in disseminating information about the advantages of the eco-friendly vehicles by highlighting the higher level of comfort and economic efficiency offered by them compared to conventional fossil fuel-powered vehicles.
"This is our common duty to encourage people to switch from conventional vehicles to EVs," he added.
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