Indonesian Political, Business & Finance News

Electric Motorcycle Incentive Delayed Due to Ongoing Review

| Source: VIVA Translated from Indonesian | Economy
Electric Motorcycle Incentive Delayed Due to Ongoing Review
Image: VIVA

The government has announced a delay in the implementation of incentives for the purchase of electric motorcycles. An in-depth evaluation will be carried out over the next month.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the postponement was due to the incentive scheme still being under review. The fiscal assistance programme was originally planned to take effect in June 2026.

“The electric motorcycle incentive was reviewed again yesterday, an additional one month,” Airlangga said in Jakarta, quoted on Tuesday, June 23, 2026.

Airlangga explained that the delay was necessary because the government still needs to thoroughly discuss the programme’s implementation mechanism before its official launch.

Previously, Finance Minister Purbaya Yudhi Sadewa stated that the government was preparing incentives for electric vehicles, targeting 100,000 units each for electric cars and electric motorcycles this year.

For electric motorcycles, the government estimates an incentive value of Rp5 million per unit. However, the final amount and scheme will be announced after discussions with relevant ministries and agencies are completed.

He also argued that the electric vehicle incentives are intended to reduce imports of fuel oil amid global oil prices that are expected to remain high in the coming months. The electric vehicle incentive programme is one of the government’s efforts to accelerate the adoption of environmentally friendly vehicles.

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