Energy Shift Institute Managing Director Putra Adhiguna has said the\ngovernment\u2019s electric motorcycle purchase incentive policy could\nstrengthen the national electric vehicle industry in the long term.<\/p>\n
Putra said the government needs to ensure the Rp3 million per unit\nincentive can help consumers switch from conventional motorcycles and\nhave an impact on the domestic industry.<\/p>\n
\u201cHowever, be wary that it does not trigger a wave of imports and\nlimited, short-lived assembly operations that do not genuinely build the\nindustry,\u201d Putra told ANTARA in Jakarta on Monday.<\/p>\n
He said the government also needs to evaluate the success of previous\nsubsidies and set clear benchmarks for manufacturers that should receive\nsupport.<\/p>\n
According to him, this is important so that the incentive does not\nmerely boost sales but also strengthens production capacity, supply\nchains, and the use of domestic components.<\/p>\n
Putra said current national production capacity is still considered\ncapable of meeting market demand, with electric motorcycle sales at\naround 70,000 units per year.<\/p>\n
\u201cProduction capacity should be able to meet demand, provided there is\nconsistent government support and clear, sound standards,\u201d he said.<\/p>\n
Putra said government incentives also need to consider consumer\npurchasing power, particularly among the middle and lower classes amid\ncurrent economic conditions.<\/p>\n
Therefore, the subsidy design needs to be better targeted by\nconsidering user needs, such as vehicle reliability, range, and the\nreadiness of charging and battery swapping infrastructure, which are\nimportant factors in building sustainable demand.<\/p>\n
He also reminded the government to maintain quality standards for\nmotorcycles and batteries as an effort to preserve public trust in\nelectric vehicles.<\/p>\n
In the long term, Putra said the development of the electric vehicle\necosystem also needs to consider the impact of nickel downstreaming on\nselling prices so that products remain affordable for consumers.<\/p>\n
As previously reported, Finance Minister Purbaya Yudhi Sadewa said\nthe electric motorcycle subsidy incentive policy could take effect as\nearly as September 2026.<\/p>\n
Purbaya revealed that the incentive for electric motorcycle purchases\nis targeted at Rp3 million per unit, with a target of 1 million units.\nThe total budget prepared amounts to Rp3 trillion.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/observer-electric-motorcycle-subsidy-to-boost-national-industry-1787554432", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }