Confirmed! Electric Motorcycle Purchase Subsidy of Rp 5 Million per Unit Starts June 2026

Jakarta, CNBC Indonesia - The government has confirmed it will provide incentives in the form of subsidies for purchasing new electric motorcycles. The value is Rp 5 million per unit. Finance Minister Purbaya Yudhi Sadewa revealed that the allocation for electric motorcycle subsidies this year is 100,000 units. The subsidy provision will begin in June 2026.

“So, electric motorcycles—I have already discussed this with the Minister of Industry and the Coordinating Minister for the Economy—the budget is still being calculated for Rp 5 million per motorcycle for 100,000 motorcycles,” said Purbaya during a press conference in Jakarta on Thursday (7/5/2026).

Meanwhile, for electric cars, the incentives are not just tax exemptions, but also for battery purchases. The quota provided for electric car incentives is 100,000 units.

“For cars, it varies—some have 100% tax covered, some have 40% for batteries, but for cars, it’s 100,000,” he stated.

Purbaya emphasised that the policy will take effect starting in June 2026. He hopes that with this policy, it will encourage the public to switch to electric vehicles, thereby reducing fuel oil imports.

“I want it to be implemented at the beginning of June so that in the second quarter there is a push—importantly, there is a switch from BBM usage to electric, so our fuel oil imports and oil can decrease; that helps our economic resilience. So, don’t just look at the subsidy; that’s the main goal for our economy’s resilience from the energy side,” Purbaya stressed.