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Moeldoko Assures Simpler Mechanism for Electric Vehicle Subsidies

Jakarta – Moeldoko, the Chief of Staff to the President, has revealed that the government is undertaking a thorough evaluation of the subsidy distribution system for Battery-based Electric Motor Vehicles (KBLBB), with a specific focus on motorcycles. This assessment comes in response to the underwhelming uptake of the electric motorcycle purchase subsidies.

Despite the government’s allocation of a substantial quota of 200,000 units for electric motorcycle subsidies in 2023, recent reports from sisapira.id indicate a mere 637 units have been claimed as of June 5, 2023, with a meager four units successfully reaching the hands of buyers.

During his keynote speech at the West Merdeka Forum 9 (FMB9), centered on the theme “Energy Transition Towards Clean Energy” on Monday (5/6), Moeldoko expressed the government’s determination to simplify and streamline the subsidy process. Recognizing the need for a more efficient mechanism, he stressed the significance of avoiding unnecessary complexities and ensuring the subsidies are accessible to the public.

The evaluation conducted by the government focuses on several aspects, including the utilization of the term “subsidy” in relation to two-wheeled electric vehicle purchases. Moeldoko acknowledged that the current requirements, such as being registered as a beneficiary of the People’s Business Credit (KUR), receiving productive assistance for Micro Enterprises, wage subsidies, and electricity subsidies up to 900 VA, may present obstacles and discourage potential recipients.

To further expedite the subsidy payments, the government is considering a Rp 7 million discount offered through dealerships. Moeldoko highlighted the importance of addressing delays in the refund process, ensuring that payments can be completed within one to two months.

In his address, Moeldoko also tackled public concerns surrounding battery-related issues. Questions regarding safety, availability, durability, and proper battery waste management continue to resonate with the public. The Chief of Staff emphasized the need for swift responses to these concerns to accelerate the growth of the electric vehicle ecosystem.

As the government’s evaluation progresses, the aim is to establish a simpler and more user-friendly subsidy mechanism that encourages wider participation and enables a smoother transition towards electric vehicles.

“It is crucial for us to promptly address these public concerns in order to expedite the development of the electric vehicle ecosystem,” Moeldoko concluded.