Electric Motorcycle Incentive Cut to Rp3 Million, Here's Purbaya's Reason

Jakarta - Finance Minister Purbaya Yudhi Sadewa has spoken out regarding the electric motorcycle incentive, which has been reduced to Rp3 million per unit from the originally planned Rp5 million per unit.

Purbaya said that despite the reduction in the incentive value per unit, its coverage is broader than the initial plan. The government has prepared an incentive of Rp3 million for every purchase of a domestically produced electric motorcycle. With a target of one million units, the total budget prepared reaches Rp3 trillion.

“The amount was previously Rp5 million for 500,000. Now it is Rp3 million for 1 million motorcycles. The total cost is Rp3 trillion,” he told journalists at the Juanda Building in Jakarta on Friday (28/8/2026).

Regarding this incentive, Purbaya previously estimated that realisation of its distribution this year would not yet reach the target of one million units. He estimated that sales of electric motorcycles utilising the government incentive by the end of the year would likely only reach around 100,000 units.

Purbaya explained that the programme announced by President Prabowo is the same programme as the electric motorcycle incentive scheme to be implemented by the government.

Nevertheless, Purbaya assessed that the production capacity of the national electric motorcycle industry remains the main challenge. Therefore, the government estimates that the number of electric motorcycles that can be absorbed by the end of the year is still far below the one million unit target.

According to him, the production capacity of several domestic electric motorcycle manufacturers is still limited. In fact, some manufacturers have production capacity of only tens of thousands of units per year.