8 Electric Motorcycle Brands Receive Subsidized Purchase Assistance

The government's subsidy policy for purchasing new electric motorcycles and converting motorcycles with fuel oil (BBM) into electricity is effective from March 21. The value of the government incentive is Rp 7 million per unit for the purchase and conversion of electric motorcycles.

"This subsidy applies only to 2023 and 2024 for one million new and convertible electric motorcycles, with a total budget requirement of Rp 7 trillion," Finance Minister Sri Mulyani Indrawati said at the Launching Event of the Government's Assistance Policy for Battery-Based Electric Motorized Vehicles (KBLBB) on Monday.

The Director General of the Metal, Machinery, Transportation Equipment and Electronics Industry of the Industry Ministry, Taufiek Bawazier, disclosed that this subsidy would be available to eight companies with 13 electric motorcycles.

These manufacturers have complied with the government's demands, which have a 40 percent for domestic content (TKDN) in their goods. He stated, "There are eight companies for 13 models of two-wheeled KBLBB with TKDN of 40 percent as of Monday, March 20, 2023."

The government is finalizing a subsidy scheme for electric cars and buses that will take effect on April 1. "With TKDN above 40 percent participating in the Industry Ministry program, [companies] are given a 10 percent VAT incentive so that only 1 percent of VAT has to be paid," Sri Mulyani said.