Indonesia is making progress in creating a supportive environment for electric vehicles, as three state-owned companies have signed a memorandum of understanding (MoU) to promote the National Electric Motorcycle (Molinas) initiative.
State oil and gas firm Pertamina, via its subsidiary Pertamina Patra Niaga, signed the MoU with electricity company PLN and defense and technology firm Len Industri, witnessed by high-ranking officials from Indonesia's sovereign wealth fund Danantara.
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The agreement for cooperation establishes a foundation for the three government-owned firms to create infrastructure for charging and swapping electric vehicle batteries.
Eko Ricky, the Retail Marketing Director of Patra Niaga, characterized the MoU signing as a strategic move to enhance the firm's role in the national energy transition by backing the Molinas initiative. He mentioned that promoting Molinas is also aimed at assisting Indonesia in reaching its net-zero emissions goal by 2060 or sooner.
"Through this collaboration, we aim to ensure the transition to electric vehicles goes beyond merely providing the vehicles themselves. Equally important is building a reliable energy ecosystem that is accessible across various regions," Ricky states.
He provided details on Patra Niaga's involvement in the Molinas program, emphasizing intentions to enhance downstream infrastructure by combining its fuel stations and key retail locations with battery charging and swapping services.
Ricky mentioned that the company transformed 837 fuel stations into "green energy stations" throughout Indonesia, providing 112 EV charging points and 122 battery-swapping facilities to aid electric vehicles, including motorbikes.
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"This initiative reflects our readiness to build a reliable and accessible ecosystem for future energy," he added, noting that the three companies share a commitment to supporting the government's target of reducing emissions from transportation.
Inaugurated by President Prabowo Subianto last August, Molinas aimed to assist Indonesia in strengthening its stance within the electric motorcycle supply chain. The initiative aims for an ecosystem bolstered by local expertise in parts manufacturing, car assembly, battery creation, and post-sale services.
Recently, the Industry Ministry has verified that upcoming government incentives for electric vehicles (EVs) will specifically focus on high-value-added products that aid the national development programs for electric cars and motorcycles. Industry Minister Agus Gumiwang Kartasasmita mentioned that the government aims to ensure the incentive policy fosters a strong domestic industrial ecosystem. The Industry Ministry is developing the essential technical regulations to assist the policy framework created by the Finance Ministry.
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Agus pointed out that although specifics about local content requirements (TKDN) are still being finalized, his ministry is prepared to implement any criteria set forth in the upcoming Minister of Finance Regulation (PMK). The alignment of the policy comes after Finance Minister Purbaya Yudhi Sadewa stated that President Prabowo Subianto will announce a significant EV stimulus package in the next two to three weeks.
The package is anticipated to encompass around 500,000 electric vehicles and motorcycles. The proposed fiscal stimulus consists of a complete exemption from the luxury goods sales tax (PPnBM) and a 40 percent value added tax (PPN DTP) incentive covered by the government for qualifying models.