Indonesian Political, Business & Finance News

Aismoli Welcomes Incentive Plan for One Million Electric Motorcycles in Indonesia

| Source: ANTARA_ID Translated from Indonesian | Industry
Aismoli Welcomes Incentive Plan for One Million Electric Motorcycles in Indonesia
Image: ANTARA_ID

The Indonesian Electric Motorcycle Industry Association (Aismoli) has welcomed the government’s plan to provide incentives for one million electric motorcycles produced in Indonesia.

Aismoli Secretary General Hanggoro Ananta Khrisna said that incentives are an important instrument for encouraging public interest in purchasing EV vehicles while strengthening the national electric vehicle industry.

“In terms of fiscal incentives, this has already been proven in 2023-2024; with the purchase assistance for electric motorcycles, adoption increased quite rapidly,” Hanggoro Ananta Khrisna said when contacted by ANTARA on Friday.

Nevertheless, Aismoli is still awaiting the form and mechanism of the incentives that the government will implement.

“It will depend on the mechanism or type of incentive that the government will provide,” he said.

Aismoli also expressed its readiness to be involved in policy discussions should the government require input from industry players.

The association representing electric motorcycles in Indonesia considers industry involvement important so that the incentive scheme can be designed according to market conditions and consumer needs.

“We certainly welcome this very warmly and everyone is ready to support it. We are also ready if asked for our opinion or invited to discuss the mechanism and other matters related to this incentive,” he said.

Previously, in his state address at the Parliament Complex in Jakarta on Friday, President Prabowo Subianto said the government is ready to provide incentives for one million electric motorcycles produced domestically.

“Today we announce that we will provide incentives for one million electric motorcycles produced domestically by Indonesian entrepreneurs,” Prabowo said.

The policy has three objectives: reducing vehicle costs for the public, reducing consumption of imported fuel, and growing the national electric motorcycle industry along with its supply chain, including batteries, components, software and after-sales services.

“This policy has three objectives at once: lowering vehicle costs for the people, reducing consumption of imported fuel, and growing the national electric motorcycle industry along with its supply chain of batteries, components, software and after-sales services,” he said.

Previously, the government has also provided incentive injections for people wishing to switch to electric motorcycles.

Among other measures, the government has provided purchase incentives of Rp7 million per unit for electric motorcycles, including for conversion programmes, as well as various fiscal incentives for four-wheeled electric vehicles and buses.

At the regional level, electric vehicles also receive facilities in the form of exemption or reduction of motor vehicle tax (PKB) and motor vehicle transfer tax (BBNKB) in accordance with applicable regulations.

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