Electric motorcycle financing in Indonesia still faces a number of\nchallenges even as disbursement continues to grow. The latest report\nfrom the Rocky Mountain Institute (RMI) identifies three main risks that\nfinancing institutions take into consideration: product and technology\nrisk, resale value, and certainty of demand and policy.<\/p>\n
Financing for electric vehicles by the multifinance industry grew\n34.7% year on year to Rp24.60 trillion as of June 2026, according to the\nFinancial Services Authority (OJK). However, that growth does not mean\nevery segment of the electric vehicle market has an equally mature\nfinancing market.<\/p>\n
In a report titled Mobilizing Electric Two-Wheeler Finance in\nIndonesia, RMI found that electric motorcycle financing is still\nconcentrated among a number of multifinance companies. Meanwhile, direct\ninvolvement of commercial banks in financing electric two-wheelers\nremains limited.<\/p>\n
\u201cRMI identified three main risks that influence financing providers\u2019\ndecisions,\u201d said RMI Principal Wini Rizkiningayu in a statement received\nby Media Indonesia on Monday (24\/8).<\/p>\n
The findings emerged as the government began positioning financing as\nan important part of the National Electric Motorcycle Programme\n(Molinas). At the programme\u2019s launch on 13 August, President Prabowo\nSubianto said the government would seek lower instalment interest rates\nand even purchases of electric motorcycles without a down payment.<\/p>\n
According to RMI, product risk arises from differences in vehicle\nquality, battery durability, manufacturer track records, and after-sales\nservice. These conditions mean financing institutions need to assess\nproduct quality and sustainability before expanding credit\ndisbursement.<\/p>\n
Meanwhile, resale value risk arises because the used electric\nmotorcycle market is still immature. The absence of a widely used method\nfor assessing battery health also makes vehicle asset values more\ndifficult to determine.<\/p>\n
As for uncertainty over demand and policy, it makes creditors tend to\nbe cautious in expanding their portfolios. The combination of these\nthree risks can lead to higher down payments, shorter tenors, more\nselective partnerships with manufacturers, and even restrictions on\ncredit portfolios.<\/p>\n
\u201cTherefore, RMI considers that lowering interest rates alone is not\nenough to expand electric motorcycle financing,\u201d said Wini.<\/p>\n
According to her, a risk-reduction framework is needed that includes\nincreasing capital and credit, innovative business models, asset value\nprotection, and strengthening market infrastructure.<\/p>\n
Such interventions are expected to reduce the cost of capital,\nimprove financing feasibility, strengthen asset value recovery, and\nprovide the data needed for credit risk assessment, insurance pricing,\nand vehicle valuation.<\/p>\n
Meanwhile, Chairman of the Indonesian Electric Motorcycle Industry\nAssociation (Aismoli) Budi Setiyadi said electric motorcycle financing\ncannot simply be made cheap. The products being financed also need to\nhave characteristics that are easier for financial institutions to\nassess.<\/p>\n
\u201cWarranties, after-sales service, battery health transparency, and\nmore measurable resale value will increase financing companies\u2019\nconfidence,\u201d said Budi.<\/p>\n
According to him, the easier product risk is to assess, the greater\nthe room for the financing industry to expand electric motorcycle credit\ndisbursement. Thus, strengthening the vehicle ecosystem is an important\npart of expanding access to financing.<\/p>\n
\u201cIn the long term, the industry needs to build a market that does not\ndepend only on government incentives,\u201d he said.<\/p>\n
Indonesia is targeting 13 million electric motorcycles by 2030.\nMeanwhile, based on data processed by the Ministry of Industry\n(Kemenperin), the total electric motorcycle population in Indonesia had\nonly reached 242,909 units as of April 2026.<\/p>\n
To narrow the gap towards that target, financing needs to address two\nissues at once: making instalments more affordable for consumers and\nmaking vehicle risk easier for credit providers to assess.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/electric-motorcycle-financing-still-risky-these-are-the-3-main-challenges-1787568656", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }