Passed TKDN, Alva Brand Included in Subsidized Electric Motor List

Dream - ALVA electric motor brand announced that it has qualified to participate in the government's subsidy program for electric motor purchases. They claim that the Domestic Content Level (TKDN) of the ALVA One electric motor product has increased.

ALVA has made a commitment to domestic investment to build an electric vehicle ecosystem and has collaborated with local companies, resulting in ALVA One achieving a latest TKDN percentage of 44 percent.

"One of the concrete forms is the manufacturing facility in Cikarang and collaboration with our partners in Indonesia," said Putu Yudha, Chief Marketing Officer of ALVA in a press release, quoted on Wednesday, April 5, 2023.

ALVA is an electric motor produced by PT. Ilectra Motor Group (IMG), a part of PT Indika Energy Tbk.

ALVA ONE also won the Electric Scooter category at the 2023 OTOMOTIF Awards held by Tabloid OTOMOTIF.

This award was given to ALVA after successfully going through various testing stages and emerged as the winner after being compared according to its category.

"This moment is the result of our commitment to present the best electric motor in its class. We believe in the 3 advantages of ALVA in terms of performance, comfort, and connectivity that make ALVA successfully win this award. We have designed these 3 aspects very well to provide satisfaction to consumers," said Putu.

This is How to Buy an Electric Motor to Get a Rp7 Million Subsidy

Dream - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita emphasized that subsidies for electric motors are indirectly given to consumers. The mechanism will be through the manufacturers.

"The subsidy is given to the motor manufacturers. So, it's easy for us to control it if it goes to the manufacturers," said Agus in a press conference quoted from Liputan6.com, Tuesday, March 7, 2023.

When consumers buy electric motors through manufacturers or dealers, the ID number (NIK) of the prospective buyer will be checked to ensure their eligibility for a Rp7 million discount.

"The prospective buyer comes to the dealer. Then, the dealer checks the ID number on the ID card to see if this prospective buyer is eligible for assistance. If it is confirmed eligible after checking, the buyer will immediately receive a Rp7 million discount," he said.

If deemed eligible, the consumer will be ordered a motor vehicle according to the procedure and a subsidy claim will be submitted to the State-Owned Banks Association (Himbara).

Afterwards, after Himbara bank checks the documents, the bank will pay a subsidy of Rp7 million to the electric motor vehicle manufacturer.

"This makes it easier for us to control it," added Agus.

Two Electric Motor Assistance Programs

Head of Fiscal Policy Agency Febrio Kacaribu also explained that there are two assistance programs from the government for the purchase of electric motors. Namely, a subsidy of Rp7 million per unit for new electric motor vehicles and secondly for conventional motors that are converted.

"The Government provides assistance for the purchase of new electric motorcycles amounting to Rp7 million per unit for 200,000 units in 2023," said Febrio.

The same amount is also given for 50,000 conventional motorcycles that are converted into electric motors in 2023.

"Earlier it was mentioned that there are 50,000 units in 2023, the target recipients of this Government assistance are prioritized for MSMEs, especially KUR recipients, and 450 VA electricity customers," said Febrio.