Electric Motorcycle Incentive Reduced to Rp3 Million per Unit

Finance Minister Purbaya Yudhi Sadewa has revealed that the government has prepared a budget of Rp3 trillion for the electric motorcycle purchase incentive programme. The incentive has been set at Rp3 million for each electric motorcycle unit.

Purbaya said the programme targets up to 1 million electric motorcycle units. However, the incentive distribution target is not expected to be fully realised this year due to the national electric motorcycle production capacity.

“If I am not mistaken, each incentive is Rp3 million,” Purbaya said in Jakarta on Thursday (20/8).

With the amount of Rp3 million per unit and a target of up to 1 million units, the total budget prepared by the government reaches Rp3 trillion. This figure is lower than the initial plan of Rp5 trillion with an incentive of Rp5 million per unit.

When asked about the change in the incentive amount, Purbaya said the government is still considering the programme’s absorption rate until the end of the year. According to him, the national electric motorcycle production capacity has not yet reached 1 million units.

“If the absorption rate is sufficient this year to absorb all that money, I don’t think so,” Purbaya said.

He estimated that the number of electric motorcycles absorbed by the end of the year will not reach the target of 1 million units. The government will still evaluate the possibility of increasing the budget or adjusting the programme based on its distribution realisation.

“So later I will think about whether it can be increased,” he concluded.