Electric Motorcycle Subsidy Ready for Inauguration in August 2025, Budget Dwindles

KatadataOTO – The government has once again provided new hope for the provision of electric motorcycle subsidies for the 2025 period. It is reported that this assistance will be disbursed soon.

However, the Ministry of Industry (Kemenperin) has not yet found the right format for the electric motorcycle subsidy.

“There is a proposal like the previous one, and another one like the Government-Borne Import Duty (BMDTP),” said Faisol Riza, Deputy Minister of Industry, to Antara on Wednesday (02/06).

Faisol explained that they still need further discussions with related ministries. Especially with the Coordinating Ministry for Economic Affairs.

Photo : KatadataOTO

So they can disburse the electric motorcycle subsidy to the public in the country soon.

“But it seems the industry players (producers) want it to be like the previous year (a subsidy of IDR 7 million per unit),” he continued.

Faisol also revealed that the launch of the electric motorcycle subsidy could be realized next month or in August 2025.

This can be implemented after the Ministry of Industry holds further discussions with related ministries and institutions.

“We asked for it to be expedited, the last meeting was still focused on this holiday season. The Coordinating Minister (Airlangga Hartarto) will schedule the (next meeting) after this holiday season, possibly in August,” Faisol added.

The Budget Has Dropped Significantly

Previously, Faisol also said that Sri Mulyani, the Minister of Finance (Menkeu), had approved the electric motorcycle subsidy budget for this year at only IDR 250 billion.

If looked at in more detail, the amount above has decreased compared to previous years. In 2023, the government prepared a fund of IDR 1.75 trillion for 200,000 new electric motorcycles and 50,000 converted electric motorcycles.

Then it increased in 2024 to IDR 5.25 trillion for 600,000 new electric motorcycles and 150,000 converted two-wheeled vehicles.

However, the reality on the ground was that only IDR 350 billion was realized, with the available quota being only 50,000 units of electric two-wheeled vehicles.