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Sri Mulyani: Electric Vehicle Subsidy to Accelerate Economic Transformation

by Becky
2023-05-30
in News, Tech & Science
A A
electric motorcycle at the Battery-Based Electric Vehicle

An electric motorcycle at the Battery-Based Electric Vehicle Exhibition in the G20 Summit series at Bali Collection, Nusa Dua, Bali, Saturday (12/11/2022). The exhibition was attended by 28 automotive manufacturers. Media Center G20 Indonesia / Risyal Hidayat / nym.

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Jakarta – Minister of Finance Sri Mulyani Indrawati has responded to the views of members of the House of Representatives regarding the government’s policy of providing subsidies for electric vehicles, which is considered a waste of budget.

Sri Mulyani said that the support for Battery-Based Electric Motor Vehicles is an effort to encourage the acceleration of economic transformation.

“The Battery-Based Electric Motor Vehicles is an effort to accelerate economic transformation for the creation of high added value, expansion of employment opportunities, and the use of environmentally friendly energy so as to reduce emissions, as well as the efficiency of energy subsidies,” Sri Mulyani said at the House of Representatives Plenary Meeting on Tuesday (30/5/2023).

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In addition, the Minister said, support for the development of the Battery-Based Electric Motor Vehicles industry ecosystem is also carried out in many countries such as the United States, Europe, China, and several Southeast Asian countries such as Vietnam, Thailand, and Malaysia. Motor vehicle manufacturers in many countries have also committed to switch to producing 100 percent electric cars in 2035-2040.

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“In connection with this, the Government introduced a series of incentives directed at both the supply and demand sides to stimulate investment and the use of electric vehicles by the public at large,” the Minister explained.

The Minister emphasized that support for the development of Battery-Based Electric Motor Vehicles is also carried out by developed countries and neighboring countries in Asia.

Seeing that more and more countries are improving the electric vehicle industry, Sri Mulyani emphasized that Indonesia should not just be a spectator. What’s more, Indonesia has a lot of raw material capital for electric vehicles.

“Indonesia cannot be a spectator! What’s more, Indonesia is a mineral producer that determines the world,” she said.

Previously, members of the House of Representatives considered that there are still many urgent things that must be resolved by the government compared to providing incentives, such as economic stabilization to poverty alleviation, compared to subsidizing electric vehicles that can only be enjoyed by a handful of upper-class consumers.

Tags: Battery-Based Electric Motor VehiclesSri Mulyani Indrawati
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