Periklindo Says All Dealers Are Worried Sick Awaiting Subsidy Certainty

KatadataOTO – The continuation of electric motorcycle subsidies is still unclear. This is said to be one of the main obstacles to the sale of environmentally friendly two-wheeled vehicles.

Currently, the program for four-wheeled vehicles, both pure electric and hybrid, is still ongoing.

For electric cars, there is a 10 percent VAT (Value Added Tax) discount. Meanwhile, a smaller discount of three percent applies to hybrid cars.

The scheme for electric motorcycles is slightly different. A direct discount of around Rp 7 million is applied to the price.

Photo : KatadataOTO

Periklindo (Indonesian Electric Vehicle Industry Association) highlights the negative impact of the uncertainty surrounding electric motorcycle subsidies.

“All dealers are now ‘getting a stomach ache’ because no one is buying (electric motorcycles). Buyers are waiting for when new incentives will appear,” said Moeldoko, Chairman of Periklindo at the Kadin ESDM and Katadata Energy Insight Forum some time ago.

This incentive turmoil makes it difficult for dealers to attract buyers, ultimately leading to layoffs (Termination of Employment) at the related outlets.

Moeldoko emphasized that the government's initiative to support the acceleration of electrification is already quite good. 

Such as Presidential Instruction (Inpres) Number 7 of 2022, which requires government official vehicles to use electric cars.

“A very good situation for the business world, there is a clear umbrella. However, the policies below it still need to be improved,” he asserted.

For the acceleration of electrification to run well, he believes the government needs to provide certainty, especially for business actors.

“We currently have no certainty. So let's pursue all of that,” he asserted.

For your information, the Rp 7 million electric motorcycle subsidy program is rumored to be continuing.

Photo : KatadataOTO

However, the certainty will only be announced on June 5, 2025, coinciding with the launch of an incentive package to boost economic growth.

The incentive package includes several things such as discounts in the transportation sector for two months to a 20 percent toll tariff discount for 110 million motorists passing through during the school holiday period.

In addition, there is also an increase in social assistance for basic food cards and BSU (Wage Subsidy Assistance), as well as a 50 percent discount on JKK (Work Accident Insurance) contributions for workers in labor-intensive sectors.