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Jakarta, 31 Juli 2024 - The government continues to be committed to accelerating the growth of electric vehicle infrastructure, to address pollution and global warming issues.
Acording Rian Ernest, Secretary General of the Association for Electric Mobility Ecosystems (AEML), “April 21 was the hottest day in human history. Air pollution in Jakarta and its surroundings is already very troubling. Vehicle pollution is the second contributor to pollution. The population of cars and motorcycles is large, especially motorcycles. Motorcycles in Indonesia still use Euro 3 gasoline standards. In comparison, neighboring Thailand is already EURO 4. Fuel subsidies are high, and the government also admits that there are problems with the targeting of fuel subsidies. We have also been a net importer of fuel for a long time. Health-wise and fiscally, we need to encourage the public to move to electric vehicles.”
Rian continued, “According to SRUT data from the Ministry of Transportation, four-wheeled electric vehicles grew 43%, while two-wheeled electric vehicles grew 262% in the same period. The price war between Chinese and Korean electric cars presents more and more choices for consumers, according to their needs and budget as well. The local electric motor industry is also growing.”
As a form of tangible support, the Ministry of Energy and Mineral Resources (ESDM) has issued Permen of ESDM No. 7 of 2024 which provides a widening of the power limit, so that business actors of the Public Electric Vehicle Charging Station (SPKLU) and Public Electric Vehicle Battery Exchange Stations (SPBKLU) are subject to low-voltage bulk tariffs.
The Ministry of Energy and Mineral Resources, through the Directorate General of Electricity, recognizes the importance of synergy between the government and the private sector in encouraging the development of electric vehicle infrastructure in Indonesia. Thus, the implementation of low voltage bulk tariff is expected to increase the attractiveness of investment in this sector.
AEML, as a representation of business players in the electric vehicle sector who are also actively involved in providing input into the preparation of this policy, appreciates the Permen of ESDM.
Rian said, “Since November 2023, AEML has been actively involved in a series of discussions with policy makers and a public consultation session in March 2024 regarding policies for more competitive electricity purchase rates for SPKLU and SPBKLU businesses. This step is an important milestone in the effort to encourage the growth of electric vehicle infrastructure in Indonesia. We hope that this low-voltage bulk tariff incentive can make business actors more aggressive in expanding SPKLU and SPBKLU. Based on discussions with AEML members, we are optimistic that swap battery businesses will increase up to 50% of the number of swap battery cabinets, with this new regulation.”
Previously, access to bulk electricity tariffs was only limited to large-scale electric vehicle infrastructure installations with power above 200 kVA. However, with the issuance of Permen of ESDM No. 7 of 2024, the scope of bulk tariff beneficiaries has been expanded. Now businesses of Public Electric Vehicle Charging Stations (SPKLU) and Public Electric Vehicle Battery Exchange Stations (SPBKLU), some of which operate at low voltage, can enjoy more competitive electricity tariffs.
In addition to appreciating the MEMR, AEML also appreciates PLN's incentive program in the form of a 50% discount (maximum Rp175 million) for the cost of new installations or adding power for electric vehicle charging infrastructure providers. This program is valid until December 31, 2025 and is intended specifically for business entities, public transport installation owners, as well as SPKLU and SPBKLU partners.
PIC:
Rian Ernest
Sekjen AEML +6282123335712