The Future of Electric Motorcycle Subsidies in Indonesia Remains Unclear

KatadataOTO – Two-wheeled EV (Electric Vehicle) manufacturers in the country need to be patient this year. This is because the government has not yet provided clarity regarding the electric motorcycle subsidy in the form of a Rp 7 million price cut for vehicles that meet the requirements.

Meanwhile for cars, a 10 percent tax incentive still applies. Hybrid cars also receive a three percent tax subsidy.

The subsidy scheme for electric motorcycles is indeed different because the discount is applied directly to the vehicle's price. When a consumer makes a purchase, the manufacturer must first bear the cost.

The government is still reluctant to provide any details about the electric motorcycle subsidy awaited by several manufacturers and consumers in 2025.

Photo : Courtesy

The government seems to still be focusing on four-wheeled electric motor vehicles. After the tax incentive was provided, sales figures for electric cars have shown positive results.

Meanwhile, the electric motorcycle subsidy has faced many obstacles. Reports also show that dealers often struggle to cover the Rp 7 million discount for each sale.

This is because the Rp 7 million price cut, which is reimbursed by the government through the subsidy, reportedly does not reach the manufacturers immediately. This has the potential to cause losses.

When asked for confirmation on the matter, a representative from the Coordinating Ministry for Infrastructure and Regional Development of the Republic of Indonesia provided a limited response.

“I don't know, I have to ask first. I am preparing a report for Presidential Regulation (Perpres) 79,” said Rachmat Kaimuddin, Deputy for Coordination of Infrastructure and Regional Development at the Coordinating Ministry for Maritime and Investment Affairs of the Republic of Indonesia and also a member of the Board of Trustees of AEML (Electric Mobility Ecosystem Association) in Jakarta, on Friday (20/05).

Incentives are still considered one of the main attractions for consumers in purchasing two-wheeled electric vehicles.

Therefore, with the absence of incentives, he could not yet project how the national growth of electric motorcycles will be in the future.

Five months into 2025, manufacturers have not heard about the continuation of the electric motorcycle subsidy program. On the other hand, the performance of electric and hybrid cars is getting better thanks to incentives.

Photo : KatadataOTO

“My estimate should be 100,000 (electric car sales) for cars. As for motorcycles, not yet,” said Rachmat.

For your information, the number of electric motorcycles sold throughout the first quarter of 2025 was 2,000 units. Meanwhile, the government's target is 200,000 units per year.

In 2024, electric motorcycle sales reached 60,000 units thanks to the subsidy. Looking at the achievement of 2,000 units this year, it seems it will be difficult to at least match last year's results.