AISMOLI proposes multi-year electric vehicle incentive policy

The Indonesian Electric Motorcycle Industry Association (AISMOLI) has proposed the implementation of a multi-year electric vehicle incentive policy to provide certainty for industry players, investors, and consumers.

"We hope this policy is designed on a multi-year basis to provide certainty for consumers, industry, and investors, accompanied by technical regulations that need to be prepared from the outset so the programme can run immediately after the rules are issued," said AISMOLI Public Relations & Event Executive Riniwaty Sinaga when contacted from Jakarta on Monday.

"We propose a minimum of three years," she added.

She noted that three years is a sufficiently good policy implementation period as it is likely to remain within the same government administration.

"Under three years, the volume that encourages the ecosystem to grow without government intervention has not yet been formed," she said.

However, AISMOLI believes that implementing the incentive policy over a longer duration would be better for the sustainable growth of the automotive industry.

"Ideally five years to achieve organic growth volume," said Riniwaty.

The association hopes the government can soon provide regulatory certainty and accelerate the implementation of incentive policies related to electric vehicle usage.

"We are always ready to support if the government announces it in the near future for implementation," said Riniwaty.

The government plans to provide a subsidy of Rp5 million per unit for the purchase of electric motorcycles to encourage the use of electric vehicles, which are considered more environmentally friendly.

The Minister of Finance regulation regarding incentives for electric vehicle purchases is targeted for issuance in July 2026.

The government previously established an electric vehicle incentive policy that was valid for one year.