Government Confirms Electric Motorcycle Incentives in 2025

KatadataOTO – After a delay, the government has finally confirmed that the Rp 7 million subsidy for electric motorcycles will be extended to 2025. The decision is expected to help the development of electric vehicles, which has been continuously promoted.

Moreover, manufacturers have been waiting for certainty regarding the government's policy.

“The electric motorcycle subsidy should still continue. Because everyone has agreed, the program will not be disrupted,” said Airlangga Hartarto, Coordinating Minister for Economic Affairs, as reported by Antara (08/02).

He also added that the subsidy policy will be implemented once the Minister of Finance Regulation is issued.

Photo : KatadataOTO

"Yes, it will be implemented soon. Once the PMK (Minister of Finance Regulation) is out, the policy will be in effect," he added.

It should be noted that last year, the government, through the Ministry of Industry (Kemenperin), established various requirements for applying for the electric motorcycle subsidy, 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 there is an assistance of Rp 7 million for one ID card (KTP). This means one person can only receive the incentive once.

In the 2024 subsidy program, the government allocated 200,000 new electric motorcycle units and 50,000 converted motorcycle units with a total budget of Rp 1.75 trillion. This quota was planned to increase to 1 million units in 2024 and will likely be further expanded in 2025.

Awaited by Industry Players

The certainty of this incentive is certainly beneficial for electric motorcycle industry players. This is because they have been operating with uncertainty.

Photo : Courtesy

As a result, many potential customers have postponed their purchases, hoping to get a cheaper unit. This was stated by Raditya Wibowo, CEO of Maka Motors, some time ago.

“Whatever the form, we hope the government can make an announcement soon to provide certainty for consumers. So they don't hold off on purchasing in order to buy it cheaper if there is an incentive,” he said.