Why Electric Motorcycle Conversion Incentives Are Stalled

KatadataOTO – The continuation of the electric motorcycle conversion incentive is still unclear. Even though the assistance is highly anticipated by some parties.

The Ministry of EMR (Energy and Mineral Resources) has spoken out. According to them, there are several factors preventing the policy from being realized.

One of them is because President Prabowo Subianto is making reconstruction budget adjustments as stated in Presidential Instruction (Inpres) Number 1 of 2025.

This regulation explains spending efficiency in the implementation of the State Budget (APBN) and Regional Budget (APBD) during 2025.

Photo : KatadataOTO

“The minister said there is (an incentive), but we are still discussing the budget, this is due to efficiency,” said Eniya Listiani Dewi, Director General of NREEC (New, Renewable Energy and Energy Conservation) of the Ministry of EMR at the Carbon Neutrality Mobility Event at Gambir Expo, Kemayoran, Jakarta some time ago.

Eniya revealed that as a result of this efficiency, the 2025 budget ceiling for the Ministry of EMR was cut by up to Rp 1.65 trillion.

Meanwhile, the Directorate General of NREEC specifically experienced a decrease of Rp 318.6 billion. So the funds received are only Rp 238.36 billion.

She further explained that the funds used for the electric motorcycle conversion incentive in 2024 were partly from the government, amounting to Rp 10 million for each vehicle.

Then CSR (Corporate Social Responsibility) funds were provided by a number of companies. Resulting in an additional Rp 5 million for one person.

So in total, the public receives an electric motorcycle conversion incentive of Rp 15 million. This assistance is also claimed to have received a positive response.

“The conversion of electric two-wheeled vehicles last year has increased from only 145 units in 2023. In 2024 we recorded around 1,300,” she continued.

Previously, the Ministry of EMR did support the electric two-wheeler conversion program, in order to encourage people to use EVs.

Photo : Ministry of EMR

Therefore, Aismoli (Indonesian Electric Motorcycle Association) also welcomes the plan to continue the electric motorcycle conversion incentive. It is hoped that this will encourage the public to make the conversion.

“If the government provides subsidies, they (the conversion workshops) are ready to support it,” said Budi Setiyadi, Chairman of Aismoli, when contacted by KatadataOTO separately.

Speaking of electric motorcycle conversion workshops, there are already several scattered locations that can be utilized by the public, especially in Jakarta and the West Java area.