SAIC Urges Ministry of Industry to Extend Electric Vehicle VAT Incentive
11 October 2025, 09:00 WIB
The Ministry of Transportation states that safety features in electric vehicles can reduce the risk of accidents.
By Adi Hidayat
KatadataOTO – The Ministry of Transportation states that electric vehicle technology has an important role in improving driving safety. This is because they contain various features that make control easier for the driver.
The comprehensive safety features have even prompted conventional vehicle manufacturers to continuously develop ways to reduce accident rates.
"Electric vehicle technology has a strategic role in supporting driving safety,” said Aan Suhanan, Director General of Land Transportation at the Ministry of Transportation, as reported by Antara (21/05).
The former Head of the National Police Traffic Corps (Korlantas) added that most traffic accidents are caused by human error. Therefore, the addition of safety technology can reduce this risk.
“Accidents are mostly caused by human error. There are many contributing factors, including a lack of technology that supports safety aspects, especially for monitoring drivers," he said.
Therefore, the electric vehicle ecosystem is considered a means to support driving safety on the road.
Furthermore, he stated that the ecosystem and growth of EVs are currently developing rapidly, although the numbers are still relatively small. In 2021, the number of operational EVs was 1,200 units, while now there are 28,000 units.
This increase is inseparable from the many incentives provided by the government to encourage the use of electric vehicles in the country. Electric motorcycles, for example, received a significant subsidy in 2024, causing their population to increase drastically.
In addition, the development of electric cars has also been quite rapid. A number of manufacturers are competing to invest in the country.
The rapid increase in the electric vehicle population has also had an impact on their involvement in traffic accidents. Aan stated that this year there have been 435 EV accidents involving cars, motorcycles, and bicycles.
Of these incidents, 333 involved electric bicycles. Therefore, various safety-based regulations are being prepared to properly regulate their use.
In fact, on several occasions, the police have taken action against users of electric bicycles on public roads. Although it is still in the form of a warning, it is hoped that the public will become more educated about this prohibition.
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