Jakarta – President Joko Widodo has signed Presidential Instruction No. 7/2022 that mandated the use of Battery Electric Vehicles (BEVs) as daily operational or on-duty vehicles for government officials across the country.
Chief of Staff to the President, Moeldoko, said that this move aimed at accelerating the country’s transition from fossil energy towards new and renewable energy.
“Electric vehicles are part of the country’s energy transition grand design. In order to accelerate it, the government starts by switching fossil fuel vehicles to battery-powered transportation,” said Moeldoko, at the Bina Graha building, Jakarta, Thursday (15/9).
Moreover, the issuance of the Instruction has provided a way for Indonesia to become a leading country in energy transition.
“As other countries compete with their innovations to combat climate change, we should not only be spectators. We must also take part in it and be one of the main actors. This Presidential Instruction leads us the way to become a main actor in the global energy transition agenda,” he said.
Not only that the switch would help the country achieve the net zero emission target in 2060, opting to battery-powered vehicles can also be a solution to terminate the country’s dependence towards fuel. As the government gradually phased out fossil fuel subsidies, the country’s ballooning budget could be relieved, Moeldoko said.
In addition, the EV transition is also expected to lessen Indonesia’s reliance on imported fuel amid global crude price hike.
“Fossil fuel transportation is considered expensive as both vehicles and its fuel are imported. Now it will be replaced by cheaper electric vehicles that are being produced domestically. The country’s foreign exchange savings can reach more than two thousand trillion rupiah,” said Moeldoko.
Meanwhile, the former Indonesian Military Commander said that the Executive Office of the President (KSP) would fully oversee the implementation of the Presidential Instruction on BEVs.
“KSP had long pushed for this Presidential Instruction to be issued. Now that the President has signed the regulation, KSP will continue to oversee its implementation both at the ministries/agencies level and regional governments,” explained Moeldoko.
Presidential Instruction No. 7/2022, in effect since Tuesday (13/9), addresses agencies and institutions at both central and regional level, including all Ministers of the current cabinet, Chief of Staff to the President, Attorney General, Commander of the Indonesian National Armed Forces, National Police Chief, Governors, Mayors and heads of state-owned enterprises (SOEs), to accommodate the BEV transitions.
The orders include devising state and regional policies, as well as allocating budget for purchase, lease, and/or convert fossil fuel vehicles into battery-powered electric vehicles in accordance with the provisions of laws and regulations.
