Transportation Minister: EV Important to Tackle Environmental Issues

Minister of Transportation Budi K. Sumadi test-drives an electric car in Jakarta, Friday (23/8). (Photo by: Minister of Transportation PR)

Minister of Transportation Budi K. Sumadi welcomed the issuance of Presidential Regulation Number 55 of 2019 on the Acceleration of Battery-powered Electric Vehicle program for Transportation.

According to him, electric vehicle – or EV – is a must for Indonesia to address environment issue.

“EV is a solution to reduce air pollution, particularly in Capital Jakarta,” the Minister said in a Focus Group Discussion (FGD) adopting a theme “Electric Vehicle as A Solution to Air Pollution and to Reduce Fossil Fuel”, at Le Meridien Hotel, Jakarta, Friday (23/8).

He added that electric vehicle for public transportation will not only contribute to environmental preservation, but will also support programs on national energy security and energy mix, program to reduce fossil fuel use and subsidies, and program to reduce gas emission which have been implemented by the Government.

According to Budi, the EV development program is one whole comprehensive initiative to address environmental issues and to add energy resource that can increase investment and exports, as well as bring positive impact to the country.

Therefore, Ministry of Transportation as the regulator of this program, he added, must prepare the administrative matters and take measures to support and accelerate the operation of EV.

Budi went on to say that his Minister has also prepared policies to provide incentive and facilities for those, including universities, who want to take EV testing on cars that they have manufactured.

“We welcome everyone. We also have a list of universities that have proposed for EV testing. Thus, we hope for a collaboration among regulators, industries, and transportation providers,” the Minister said, adding that public transportation such as Transjakarta buses, Damri buses operated by State-owned bus companies, and taxis can also use EV.

The Minister also expressed appreciation to a number of transportation operators including Blue Bird that has operated electric car. “(City-owned bus operator) Transjakarta has also informed that they will operate electric bus in near future. However, there are several things to address, such as developing more general electricity provider stations and determining special price,” the Minister said.

In the meantime, the Ministry’s Director General for Land Transportation Budi Setiyadi asserted that incentives could be provided through fiscal or non-fiscal scheme, adding that Ministry of Transportation has discussed this matter with Ministry of Finance.

“We will propose non-fiscal incentives to cover regulations on parking fee for electric vehicle which will be different from regular vehicle,” Budi said, adding that his office will propose to Ministry of Finance to give incentives on car testing fee for EV.

Budi Setiyadi also said that Ministry of Transportation will formulate a regulation on artificial noise which is important for the safety of road users and a regulation on electric car testing, including its test equipment which will be procured in the 2020 budget.

Translated by : Rany Anjany Subachrum
Edited by : M. Ersan Pamungkas