SMEs are asked to enter the electric vehicle ecosystem, the government must provide a solution – 2024-03-30 14:18:09

Workers assemble conventional motorized vehicles which are converted into electric motorbikes at the Elders Garage modification workshop in the Smesco Building. (MI/Susanto)

THE GOVERNMENT is required to provide solutions and not just ask small and medium industries (IKM) to enter the electric vehicle ecosystem. Moreover, domestic SMEs have made many breakthroughs and are prospective but are not accompanied by support from policy makers.

“Government encouragement can be fiscal or non-fiscal. Of course, incentives for convenience, facilitation, regulation and others take priority over fiscal incentives at a time when our fiscal space is limited like now,” said Member of Commission VII DPR RI Mulyanto when contacted, Thursday (28/3 ).

The government’s appeal to SMEs to enter the electric vehicle ecosystem is apparently quite good. That way, SMEs will have additional opportunities to grow. However, the government is still asked to provide support so that SMEs can enter the electric vehicle ecosystem.

Policy makers must be able to map the role of SMEs in the electric vehicle ecosystem. Clarity regarding the contribution of SMEs to this sector must also be sharpened so that SMEs can measure the scale of their business.

“It’s just a matter of concrete contribution to what side these SMEs will make in the electric vehicle ecosystem. If there are interesting and prospective breakthroughs, of course the government must encourage them,” said Mulyanto.

Contacted separately, researcher from the Indonesian Center for Reform on Economics (CoRE) Yusuf Rendy Manilet said the government might provide incentives and regulations that support SMEs to take part in the electric vehicle ecosystem. The ongoing development of electric vehicle technology provides opportunities for SMEs to innovate and create new products.

Entering the electric vehicle ecosystem also opens up access to new markets that are growing rapidly for SMEs. “SMEs that are able to adapt to electric vehicle technology will increase their competitiveness in the global market, increasing the potential for partnerships with large companies in the electric vehicle industry to develop new products and technology,” said Yusuf. “Thus, taking advantage of this opportunity can bring significant benefits to the growth and sustainability of SMEs in the transportation equipment sector,” he added.

According to him, the government can provide support to SMEs to enter the electric vehicle ecosystem through technical training, market and regulatory education, as well as technical assistance. Apart from that, the government provides tax incentives and subsidies and simplifies the licensing process. (Z-2)