President Support Needed


Jakarta, KOMPAS – Development of electric vehicles in Indonesia needs the full support of the President’s policy. Until now, the Presidential Regulations (Perpres) prepared related to the development of electric vehicles still have not been signed. Without President’s support, the development of electric vehicles is expected to meet many obstacles.

The basic development of electric vehicles in the country has been established in the Presidential Regulation (Perpres) No. 22 of 2017 on the National General Energy Plan. In the attachment of the Perpres, in 2025, the target of development of four-wheeled electric vehicle as much as 2200 units, while for two wheels as much as 2.1 million units. The government also said it was preparing Perpres accelerated development of electric vehicles in the country.

“Since its development involves cross-ministries and agencies, it is necessary to have a legal tool which is now discussed in the form of a Perpres. There should be a directive in the Perpres on the roadmap for the development of electric vehicles, as well as the responsibilities of every ministry and institution, “said Fabby Tumiwa, Director of the Institute for Essential Services Reform (IESR) when contacted on Sunday (20/5/2018) in Jakarta.

Because cross-ministries and agencies, the development of electric vehicles need the support of the President

According to Fabby, it is estimated there will be a drag on the development of electric vehicles with the conventional vehicle industry (oil fuel) that has been established. Therefore, the government must prepare the transitional period. There should be a target time for the ban on conventional vehicle sales, ie whether starting 2030 or 2040 as discourse in Perpres.

“It also needs clear targets for supporting instruments, such as the government set a target at 2022 on conventional vehicle sales taxes raised. Along with that, the tax on electric vehicles is lowered. The government should also encourage the growth of supporting industries for the development of electric vehicles from now on, “Fabby said.

In July 2017, the Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan threw a discourse on the preparation of Perpres on electric vehicles in Indonesia. Under the regulation, the sale of oil-fueled vehicles will be banned starting 2040. The government is also targeting to build at least 1,000 public charging stations (SPLU).

Concerning the development of the Perpres mentioned above, according to the Head of Bureau of Communications, Public Information Service and Cooperation at the Ministry of ESDM Agung Pribadi, the discussion of the contents of the Perpres has not been completed. Intensive discussions with the Ministry of Industry continue. He cannot confirm when the Presidential Regress is immediately signed.

Last week, in a discussion with Kompas, Corruption Eradication Commission Advisor (KPK), Tsani Annafari, said that his side has sent a letter to the President related to the national electric vehicle development plan. According to him, the letter is essentially in the form of support to encourage the downstream research results of universities and strengthen the domestic industry related to the development of national electric vehicles.

In a letter signed by KPK Chairman Agus Rahardjo mentioned above, the KPK encourages the approval of the Presidential Regulation on the Acceleration of National Electric Vehicles. In the letter also mentioned that Indonesia must have a national branded electric vehicle as a form of independence of the nation. Electric vehicle development incentives schemes, both fiscal and non-fiscal, should be able to create a conducive climate for the growth of domestic electric vehicle industry.

“This policy requires cross-ministerial and agency synergies to make the national electric vehicle plan truly possible,” said Tsani.

Quoting Bloomberg, China is one country that develops massive electric cars. Global electric car sales last year reached 1 million units for the first time, more than half of them sold in China. China provides discounts for the purchase of electric cars and imposing fines on conventional car manufacturers with exhaust emissions that exceed the established limits.