Ministry of Industry Confirms Electric Motorcycle Incentives Will Still Be Provided

KatadataOTO – The certainty regarding electric motorcycle incentives is a concern for many two-wheeled vehicle manufacturers. This is because many consumers are delaying their purchases while waiting for certainty on the policy.

However, according to the Ministry of Industry, the incentive scheme for electric motorcycles in question cannot be disclosed yet.

“I also confirmed with the Deputy Minister of Finance earlier. It's on schedule, but perhaps after finalizing the socialization regarding the Trump tariffs,” said Faisol Riza, Deputy Minister of Industry in Jakarta, on Monday (21/07).

He emphasized that the electric motorcycle incentives are in line with the future needs of both producers and consumers.

Photo : KatadataOTO

It should be noted that the previous electric motorcycle incentive scheme was a direct price cut of IDR 7 million.

Recipients of the electric motorcycle subsidy must be Indonesian citizens (WNI) aged at least 17 years or older.

Electric motorcycles eligible for the program also need to meet several requirements. Only locally assembled models can receive the subsidy, and they must have a Local Component Level (TKDN) of at least 40 percent.

According to the Deputy Minister of Industry, the electric motorcycle incentive is indeed a request from the association. They are currently formulating the best scheme.

He hopes that the certainty of this assistance can be announced soon and will apply to the industry starting in August 2025.

“What is certain is that the (electric motorcycle incentive) still exists and the scheme is still being decided. Hopefully, everything is on track,” said the Deputy Minister of Industry.

For your information, another scheme being considered for the electric motorcycle incentive is BMDTP (Government-Borne Import Duties).

However, based on discussions with industry players, a.k.a. electric motorcycle manufacturers, the IDR 7 million per unit subsidy scheme is preferred.

Photo : TrenOto

In addition, the allocated budget has decreased this year to IDR 250 billion.

In comparison, the subsidy has decreased from 2023, which was IDR 1.75 trillion for 200,000 electric motorcycles and 50,000 converted electric motorcycles.

The figure even increased to IDR 5.25 trillion in 2024 for a total of 600,000 new electric motorcycles and another 150,000 converted ones.