Fresh Booster to Indonesia Electric Motorbike Sales

The Indonesian government is set to revise the eligibility criteria for cash subsidies on electric motorcycles to drive adoption in the country.

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan explained that the electric motorcycle subsidies will be adjusted to align with similar policies implemented in other countries while considering their suitability for implementation in Indonesia.

Currently, the provision of cash subsidies for electric motorcycles is governed by Regulation of the Minister of Industry No. 6/2023.

The eligibility criteria include beneficiaries of People's Business Credit (Kredit Usaha Rakyat/KUR), productive assistance for micro-businesses, wage subsidy assistance, and recipients of electricity subsidies up to 900 volt-amperes. These criteria have been criticized by industry players for being too stringent, hindering the smooth implementation of the subsidies.

The Indonesian government has allocated subsidies of Rp 7 million per unit for the purchase of electric motorcycles since March, with a target of 200,000 units by the end of 2023.

However, according to data from the Two-Wheeled Electric Vehicle Purchase Assistance Information System (Sisapira), as of Wednesday, there are still 198,807 subsidy quotas available. The system recorded 1,015 units in the registration process, 142 verified, and only 36 subsidies distributed so far.