Celios: Electric Motorcycle Conversion Boosts Energy Efficiency and Local Economy

Jakarta (ANTARA) - The Center of Economic and Law Studies (Celios) assesses that the government’s ongoing electric motorcycle conversion programme is expected to improve energy efficiency while driving local economic growth. Celios Executive Director Bhima Yudhistira, contacted in Jakarta on Thursday, views the initiative as offering dual benefits, from saving petroleum fuel (BBM) to strengthening the small business sector. According to Bhima, switching from fossil fuel motorcycles to electric ones can reduce BBM usage, which also directly impacts environmental quality. “Additionally, noise levels will drop dramatically, accompanied by a reduction in exhaust gas pollutants,” he said. He explained that the programme also holds significant potential for boosting local economic growth. This is because the economic multiplier effect will increase if the government involves alternative workshops in the conversion process, rather than relying solely on official workshops or authorised dealers (ATPM). “Village workshops can be trained and provided with conversion kits for electric motorcycles,” he stated. He added that a similar approach was implemented by the French government in its electric vehicle conversion programme, which successfully expanded participation of small businesses while accelerating the adoption of eco-friendly technology. To encourage public interest, Bhima emphasised the importance of education and incentives. Some proposed incentives include exemption from vehicle tax for converted motorcycles, as well as waiving fees for number plate renewals. In addition, incentives should be given to players in the second-hand electric motorcycle market from conversions, such as exemption from ownership transfer fees. He believes this step can increase attractiveness and expand the electric vehicle market in Indonesia. Previously, the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the government will form an energy transition task force (Satgas) to accelerate the implementation of the programme, including the conversion of conventional motorcycles to electric. Bahlil made this statement after attending a limited cabinet meeting (ratas) with President Prabowo Subianto at the Presidential Palace Complex in Jakarta on Thursday (5/3). He mentioned that the task force is being formed to speed up the conversion of conventional motor vehicles, numbering 120 million motorcycles, to electric ones. “The President has formed a task force team to accelerate this. And today we were given the task by the President as Chair of the Task Force in carrying it out and translating it quickly,” Bahlil said. According to Bahlil, the President targets the programme’s implementation to run at maximum within three to four years, even hoping it can be realised faster.