Electric Motorcycle Incentive Reduced to Rp3 Million per Unit, Purbaya Speaks Out

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has revealed that the electric motorcycle purchase incentive programme of Rp3 million per unit announced by President Prabowo Subianto has a budget of up to Rp3 trillion. The incentive value has decreased from the initial plan of Rp5 trillion.

Regarding this incentive, Purbaya estimates that its disbursement this year will not yet reach the target of one million units.

Purbaya explained that the programme announced by President Prabowo is the same programme as the electric motorcycle incentive scheme that the government will implement.

“Oh yes, that is the programme. It is the same. So one million units will certainly not be fully taken up this year, from what we can see,” said Purbaya when met at the Parliament Complex, Jakarta, Thursday (20/8/2026).

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.

“Currently, for one million electric motorcycles, it is Rp3 million each,” said Purbaya.

When asked about the total budget for the programme, he answered briefly: “Rp3 trillion.”

Nevertheless, Purbaya considers the current production capacity of the national electric motorcycle industry to be the main challenge. Therefore, the government estimates that the number of electric motorcycles that can be absorbed by the end of the year will still be far below the target of one million units.

According to him, the production capacity of several domestic electric motorcycle manufacturers is still limited. In fact, there are manufacturers whose production capacity has only reached tens of thousands of units per year.

“We are still assessing whether the absorption capacity this year is sufficient to utilise all of that funding. It seems not. The national motorcycle production capacity has not reached one million. Some can only produce 20,000,” said Purbaya.

He estimates that the realisation of electric motorcycle sales utilising the government incentive by the end of the year will likely only reach around 100,000 units.

“I think at most 100,000 by the end of the year,” he said.