Indonesia to Subsidize Electric Motorcycles

Summary

Transportation Minister Budi Karya Sumadi said fuel subsidies could be diverted to electric vehicle incentives, especially for electric motorcycles. He has been discussing with the Finance Ministry the plan to provide incentives for the electric motor conversion program carried out by ministries and state institutions or the general public. "When the conversion took place, the first subsidy must be [given] for motorcycles," Budi explained.

The incentives may be taken from the regional budget to support the environmentally friendly city program. However, he did not specify when the budget reallocation would take place. Meanwhile, Energy and Mineral Resources Minister Arifin Tasrif said the electric motor conversion program would be reserved for ministries or state agencies and produce 1,000 units of electric motors by 2030. For the record, the cost of converting an electric motor can reach Rp 15 million per unit.

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