Luhut’s subordinates argue with Anies, there are several reasons for subsidizing electric cars

Jakarta, Armfalcon.com —

Deputy for Infrastructure and Transportation Coordination Coordinating Ministry for Maritime Affairs Rachmat Kaimuddin answered the former governor of DKI Jakarta’s criticism Anies Baswedan who evaluates gifts electric car subsidies not exactly.

Rachmat said subsidizing electric vehicles was part of an effort to reduce carbon emissions.

According to him, there are two steps that can be taken to reduce carbon emissions, namely the electrification of transportation and the decarbonization of electricity, so that incentives for electric vehicles are part of the government’s efforts to achieve the net zero emission commitment target by 2060.

“When we talk about reducing carbon emissions, there are two things that must be done. The first is to encourage the presence of electric vehicles and the second is to decarbonize electricity. These two things are interrelated,” said Rachmat in the Energy Corner Squawk Box which was held by Armfalcon.com via official statement, Wednesday (17/5).

He explained that to encourage the decarbonization of electricity, the government already has a commitment to reduce the energy produced from Steam Power Plants (PLTU). Before 2030, the government plans to retire PLTU early with a total capacity of 9.2 Gigawatts (GW) and replace it with New Renewable Energy (EBT).

According to Rahmat, it is hoped that the provision of smaller tax incentives will encourage the consumption of electric vehicles in Indonesia. Moreover, the price of electric cars is still more expensive than conventional cars.

Not only that, the imposition of smaller taxes is also carried out in order to reduce carbon emissions generated from conventional vehicles.

“The government does not provide subsidies for electric cars, but provides lower taxes than conventional cars. The tax rates are lower so that people still have choices when buying a vehicle,” he said.

Member of the National Energy Council, Satya Widya Yudha, thinks that the government must indeed move to encourage the development of electric vehicles in the country.

“I agree, don’t make Indonesia an extended market from outside. But we have to become players in this industry and make other countries potential markets for domestic automotive products,” he said.

In line, Executive Director of the ReforMiner Institute, Komaidi Notonegoro, said that in the development of an electric car everyone must look at various aspects, such as the multiplier effect that is created and not only look at environmental factors.

“Indonesia has nickel and other natural resources. I agree that if we are involved in the development of electric vehicles, it will create added economic value for this country. It’s just that my advice is that policy, planning as a whole starts from the environment, workers and economic aspects,” he concluded. .

Previously, criticism regarding the subsidies and incentives provided for electric vehicles drew criticism from many parties. One of them, Former Governor of DKI Jakarta and 2024 Vice Presidential Candidate Anies Baswedan, said that the policy was not a solution to solving environmental problems.

“If we count this, for example when it comes to electric cars, the per capita per kilometer carbon emissions of electric cars are actually higher than the carbon emissions of oil-fueled buses,” said Anies.

Apart from Anies, criticism also came from DPR Deputy Speaker Rachmat Gobel. According to him, the government should focus on building economic equality, alleviating poverty, and strengthening the agriculture, fishery and food sectors in general rather than pouring out subsidies for electric vehicles.

He said these sectors should receive more subsidies from the government because they are the ones who actually deserve the most assistance.

“Subsidies are for the destitute, not for the powerless. Let’s use our common sense and conscience as a nation. Which is more priority and urgent, developing agriculture by subsidizing farmers and agriculture or subsidizing electric cars and wealthy entrepreneurs?” he said in an official statement, Monday (15/5).

[Gambas:Video CNN]

(ldy/dzu)