Subsidy quota: Moderate target for electric motorcycles

  • 04 Jan 2024

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Bisnis Indonesi - Kuota subsidi: Target moderat motor listrik

By Nuhansa Mikrefin Y.P

Bisnis, Jakarta – This year, the government plans to allocate a subsidy for the sales of 50,000 electric motorcycles.

This target is considered moderate as electric motorcycle sales from January to August 2023 surpassed 35,000 units.

Moreover, the Industry Ministry has also issued Industry Minister Regulation No. 21/2023 that is reckoned will increase the interest of consumers to purchase electric motorcycles.

Industry Minister Agus Gumiwang Kartasasmita revealed that the regulation would expand and make the beneficiaries of electric motorcycle subsidy to be more flexible, so the quota of 50,000 units is predicted to be completely absorbed.

“Regarding the percentage, the increase is extraordinary as it reaches hundreds of percent,” he said on Wednesday (3/1).

However, the electric motorcycle subsidy amount will not change as it will remain at Rp7 million.

As a result, the total budget allocated for electric motorcycle subsidy in 2024 will reach Rp350 billion. This amount is significantly lower than the 2023 ceiling, which stood at Rp1.4 trillion.

Previously, the Indonesian Motorcycle Industry Association (AISI) revealed that electric motorcycle sales were still lagging behind conventional motorcycles.

AISI Secretary General Hari Budianto revealed that electric motorcycle sales from January to August 2023 reached 35,000 units.

“Electric motorcycle sales reach around 5,000 units per month. In total, conventional motorcycle sales surpass 500,000 units,” he stated.

However, he sees that electric motorcycle sales were quite positive as they significantly increased in the last two years.

“In 2021, electric motorcycle sales reached around 9,000 units, then it increased to 17,000 units in 2022. In 2023, it reached 35,000 units until August,” he stated.

Bisnis noted that currently there are 50 electric motorcycle models that can receive the Rp7 million subsidy as they fulfil the 40% local component rate (TKDN) condition. “There is the TKDN that we have set to participate in the programme. If it is imported, it cannot participate in the subsidy programme,” Agus said.

 

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