Without Subsidies, Demand for Electric Motorcycles Could Rebound
12 January 2026, 10:00 WIB
Polytron isn't waiting for the government, instead offering its own incentives for the electric motorcycles it sells.
By Adi Hidayat
KatadataOTO – Unwilling to wait for government incentives, Polytron has finally taken its own steps to market its electric motorcycles. They are providing a Rp 7 million subsidy for each of their two-wheeled EVs in Indonesia.
This step was taken to boost sales of electric motorcycles in the country. Especially after the government incentives were removed, sales experienced a significant decline.
"So we are providing our own subsidy so that the price remains competitive. Moreover, it's less hassle than using the one ID card for one vehicle scheme," said Ilman Fachrian, Head of Product EV 2W at Polytron Indonesia, some time ago.
However, he admitted that the situation is quite burdensome for the company. This is because the potential profit is smaller than it should be.
"The profit has certainly decreased, but this is also proof that we are committed to developing the electric motorcycle sector in Indonesia," he then affirmed.
He even revealed that his party will continue to launch new products to provide more choices to the public. This move is believed to be able to increase sales.
It was previously reported that the government had promised to provide electric motorcycle incentives in 2025. However, to date, the program has not yet been implemented.
Setia Diarta, Director General of Metal, Machinery, Transportation Equipment, and Electronics Industry (ILMATE) revealed that the Ministry of Industry cannot take arbitrary steps.
They must hold a meeting with the Coordinating Ministry for Economic Affairs and other related ministries. Once all that is completed, a new Ministerial Regulation can be issued.
The meeting is claimed to be very important because it will determine the amount of the incentive to be given. It will likely range between Rp 5 million and Rp 7 million per motorcycle.
“This depends on the direction from the Coordination Meeting, whether they want Rp 7 million or Rp 5 million. Everything will follow the direction of the Coordination Meeting and the capacity of the Directorate General of Budget (DJA), Ministry of Finance,” said Setia.
Meanwhile, on a different occasion, Faisol Riza, Deputy Minister of Industry, revealed that the incentive will be issued in August 2025. This is because, according to him, the electric motorcycle incentive is greatly needed to foster public interest in switching to more environmentally friendly vehicles.
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