Electric Motorcycle Incentive Program Delayed Due to US Import Tariffs

KatadataOTO – Import tariffs to be imposed by the United States on a number of countries, including Indonesia, apparently have a direct impact on the automotive sector. As a result of this regulation, the government has had to postpone providing subsidies for electric motorcycles.

This regulation was highly anticipated by manufacturers and consumers because it could significantly impact the selling price of vehicles. The difference is quite substantial, which successfully led to an increase in sales in 2024.

"Because there is a process related to import tariffs from Trump that makes us have to postpone it for a while. But the program will still continue,” said  Faisol Riza, Deputy Minister of Industry (Wamenperin).

Unfortunately, he did not explain why the United States' import tariffs led the government to postpone providing incentives.

Photo : KatadataOTO

It should be noted that the Government, through the Ministry of Industry (Kemenperin), has established various requirements for applying for electric motorcycle subsidies, which are regulated in the Minister of Industry Regulation (Permenperin) Number 21 of 2023.

This regulation is a revision of Permenperin No. 6 of 2023, which governs the guidelines for government assistance for the purchase of two-wheeled battery-based electric vehicles (KBLBB).

It states that the government will provide a subsidy of Rp 7 million for each purchase. This incentive is given for only one ID card (KTP), so people cannot apply multiple times.

Throughout 2024, the government has allocated funds for 200,000 electric motorcycle units and 50,000 converted motorcycles. The total budget that has been disbursed is Rp 1.7 trillion.

A Highly Anticipated Program

The delay in the decision on electric motorcycle incentives has started to draw complaints from companies. This is because vehicle sales have been declining.

“Of course, we hope for clarity on the scheme or form of this government policy so that it can be announced sooner,” said Putu Yudha, Chief Operating Officer of Alva, some time ago.

Photo : KatadataOTO

A similar sentiment was also felt by United E-Motor. They revealed that consumers have become reluctant to spend their money.

Because they are still waiting for when the electric motorcycle subsidy will be disbursed by the government for the people in the country.
“It will definitely have a big impact, because on average, people are now waiting (for the electric motorcycle subsidy),” said Andry Dwinanda, General Manager of United E-Motor, on a different occasion.