Business Owners Reveal the Impact of Rp5 Million Subsidy for Electric Motorcycles

Jakarta, CNBC Indonesia - Electric motorcycle business owners have finally responded to the government’s policy of reinstating a Rp5 million subsidy per unit for electric motorcycles this year. The policy will apply from June 2026 to 100,000 units of electric motorcycles. Secretary General of the Electric Motorcycle Association (AISMOLI), Hanggoro Ananta, said that the government’s return to providing purchase subsidies for electric motorcycles could make the electric motorcycle industry thrive again. “With the provision of stimulus or incentives, one of which is the electric motorcycle purchase subsidy, it can revive the electric motorcycle industry in Indonesia. When government policies all point towards and support the development of electric vehicles in Indonesia, including the industry, this will foster domestic investment, so it’s not just the vehicles, but the ecosystem will also grow,” Hanggoro told CNBC Indonesia, quoted Friday (8/5/2026). He added that with government support for the electric motorcycle industry, it could attract new investments and certainly lead to new charging stations and workshops. “Thanks to this support, there will be new charging station businesses, then new workshops, and existing workshops will grow further, SMEs will also proliferate, so the multiplier effect will be even greater,” he explained. In addition, with the electric motorcycle purchase incentives and the rise in fuel prices, the potential for consumers to switch from petrol motorcycles to electric ones is also increasing. “There are already some who have switched to electric motorcycles because non-subsidised fuel is expensive. Even those who usually fill up subsidised fuel are starting to switch to electric motorcycles,” he said.