Indonesian Political, Business & Finance News

Aismoli: No Government Coordination Yet on Electric Motorcycle Incentives

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
Aismoli: No Government Coordination Yet on Electric Motorcycle Incentives
Image: MEDIA_INDONESIA

The Indonesian Electric Motorcycle Association (Aismoli) has stated that it is still awaiting official confirmation regarding the electric motorcycle purchase incentive programme that the government plans to reintroduce. To date, the association says it has not been involved in technical coordination on the policy.

Aismoli Chairman Budi Setiadi said that the amount, scheme, and criteria for incentive recipients remain uncertain. According to him, the industry needs formal communication from the relevant ministry to prepare for implementation on the ground.

“If it is indeed happening, at the very least the Ministry of Industry should have invited us to a coordination meeting to formulate the scheme. That has not happened yet,” Budi said when contacted by Media Indonesia on Friday (21/8).

Budi stressed the importance of synergy between regulators and industry players. Without coordination, he said, the government’s planned policy risks not being realised optimally due to manufacturers’ lack of readiness.

“It means there must be two parties involved: the government preparing, and us also making preparations. As long as the relevant technical ministry has not formally invited us, I would say it is still possible for things to differ,” he added.

Aismoli has asked the government to focus on finalising policy planning before announcing it to the public. Budi warned that continuously shifting discourse without certainty could damage the electric vehicle business climate in the country.

“If it is still just discourse being conveyed to the media, the industry becomes confused, there is no certainty. The negative effect is a poor business climate. It goes back and forth,” Budi asserted.

Previously, the government planned to reintroduce electric motorcycle purchase incentives this year. Finance Minister Purbaya Yudhi Sadewa said a budget of Rp3 trillion has been prepared for the programme.

Unlike the 2023-2024 period, which provided a subsidy of Rp7 million per unit, the new scheme is planned at only Rp3 million per unit. This figure is also lower than the government’s initial plan, which had set the amount at Rp5 million.

Regarding the amount, Aismoli hopes the government will maintain the subsidy figure from the previous period. Budi believes the Rp7 million figure is more effective in encouraging public purchasing power for electric motorcycles, which are typically priced at around Rp20 million.

“We are indeed asking for it to be like before, Rp7 million. Especially with motorcycle prices reaching around Rp20 million, it might still be affordable. But we also do not know whether the government has the financial capacity to go that far,” Budi concluded.

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