3 hours ago
7
February 13, 2025 | 06:28 pm
TEMPO.CO, Jakarta - The Ministry of State-Owned Enterprises (SOEs) plans to replace electric vehicles with hybrid ones as official cars in 2025, following the government's budget cut. Hybrid vehicles are deemed more cost-effective.
SOEs Minister Erick Thohir stated that the ministry's official vehicle budget would be reduced by up to 66 percent. Previously, he said, the ministry used leased electric vehicles as official cars.
"We are trying to opt for a more affordable alternative, switching from electric to hybrid. The original plan was to use electric cars, but now we’re choosing hybrids, which are cheaper," Erick said during a meeting with Commission VI of the Indonesian House of Representatives (DPR RI) at the parliamentary complex in Senayan, Jakarta, on Thursday, February 13, 2025.
Erick Thohir did not disclose the exact amount cut from the ministry’s vehicle budget. Overall, he proposed reducing the ministry's budget to Rp215 billion from the initial allocation of Rp277.5 billion. This figure surpasses the Ministry of Finance's target, which suggested cutting the SOEs Ministry’s budget down to Rp161.9 billion.
In January 2024, the Ministry of SOEs had provided electric vehicles as official cars for all Echelon I and II officials. At the time, Erick Thohir said the decision was made to support the government's energy transition efforts.
He explained that using electric vehicles significantly reduces costs compared to conventional cars, estimating savings of about 60 percent from the standard cost input for the State Budget (APBN).
"This actually saves 60 percent," he stated at the SOEs Ministry Office in Jakarta on Wednesday, January 3, 2024, as quoted by Antara.
Erick Thohir, who also serves as Chairperson of the Indonesian Football Association (PSSI), added that the adoption of electric vehicles would not be limited to Echelon I and II officials but would also extend to operational vehicles across all state-owned enterprises.
These initiatives align with Presidential Instruction (Inpres) No. 7 of 2022 on the Use of Battery Electric Vehicles (KBLBB) for Official and/or Operational Vehicles in Central and Regional Government Institutions, issued by fomer president Joko Widodo.
Editor's Choice: Expert Says BMKG's Budget Cut May Disrupt Disaster Early Warning System
Click here to get the latest news updates from Tempo on Google News
Expert Says BMKG's Budget Cut May Disrupt Disaster Early Warning System
2 jam lalu
DPR supports BMKG in maintaining the budget for weather, earthquake, and tsunami early warning systems amidst budget efficiency policies.
Human Rights Minister Ensures Staff Salaries Unaffected by Budget Cuts
2 jam lalu
The Ministry of Human Rights's budget has been cut by Rp60 billion. Human Rights Minister assures there will be no reduction in staff salaries.
Judicial Commission Mulls WFA System Implementation Due to Budget Cut
5 jam lalu
The Judicial Commission has not ruled out implementing a work-from-anywhere (WFA) work system after a budget cut of Rp74.5 billion.
Unlike RRI and TVRI, Why Isn't Antara Hit by Budget Cuts?
11 jam lalu
Unlike Radio Republik Indonesia (RRI) and the Public Broadcasting Institution TVRI, News Agency Antara did not experience budget cuts.
Basuki Hadimuljono Reports IKN's Budget Cut of Rp1.15 Trillion to DPR
22 jam lalu
Basuki Hadimuljono reports that the initial budget implementation list (DIPA) for the IKN Authority in 2025 was Rp6.395 trillion.
Ombudsman Expects Struggles in Handling Complaints Due to Budget Cuts
22 jam lalu
Ombudsman's budget is cut by up to Rp 91.6 billion. Handling public complaints will be more challenging.
TVRI Struggles to Pay Journalists and Contributors Due to Budget Cuts
1 hari lalu
The Executive Director of LPP TVRI, Iman Brotoseno said that budget cuts made it difficult to pay the journalists and contributors.
DPR Says Prabowo's Budget Cuts Ineffective
1 hari lalu
Prabowo's Presidential Instruction on budget cuts requires ministries and institutions to reconstruct their budgets.
KPU's Budget Cut by 27.53 Percent, Election Programs Targeted
1 hari lalu
The KPU's budget was cut by 27.53 percent, leaving an allocated budget of Rp2 trillion.
Erick Thohir Urges Private Banks to Help Fund Public Housing Program
1 hari lalu
Erick Thohir notes that the housing finance sector is still dominated by state-owned banks under the Association of State-Owned Banks (Himbara).
