Jakarta, CNBC Indonesia – The Indonesian Democratic Party of Struggle (PDIP) and the Nasdem Party factions highlighted the high subsidy for electric vehicles in the 2024 Draft State Budget.
This was conveyed at the 2nd DPR RI Plenary Meeting regarding the general views of the factions on the 2024 RAPBN and financial notes.
Representative of the PDIP faction Sihar Sitorus said government policies towards the country’s economic growth did require government intervention. However, the PDIP faction, he said, is of the view that government intervention should not only be in electric vehicles, but also in other sectors of the people’s economy.
“Government intervention should not only be in electric cars, but also in other people’s economic sectors,” he said while reading out the views of the PDIP faction.
The subsidies for electric vehicles in the 2024 State Budget were indeed disclosed by President Jokowi when delivering the 2024 State Budget Bill and Financial Notes, at the Senayan Parliament Complex, Wednesday (16/8/2023).
He said he would provide a series of electric vehicle incentives in 2024. This was done to encourage the development of the Battery-Based Electric Motor Vehicles (KBLBB) industrial ecosystem.
President Jokowi said that this was also done to encourage high value-added economic activity, one of which was carried out by encouraging the downstreaming of natural resources.
Similar to the PDIP, the Nasdem Fraction also criticized the subsidy for electric vehicles. Representative of the Nasdem Fraction Fauzi Amro asked the government to reconsider granting electric vehicle subsidies of IDR 4.2 trillion.
According to him, the provision of jumbo incentives contrasts with the government’s efforts to reduce poverty. The Nasdem faction, he said, suggested that the government use the budget for food security. “The increase is better for the food security budget,” he said.
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