Indonesian Political, Business & Finance News

Electric Motorcycle Incentives Await Presidential Regulation, Ministry Prepares Concept

| Source: ANTARA_ID Translated from Indonesian | Energy
Electric Motorcycle Incentives Await Presidential Regulation, Ministry Prepares Concept
Image: ANTARA_ID

Jakarta (ANTARA) - The plan to provide incentives for the purchase of electric motorcycles is still awaiting regulatory certainty in the form of a Presidential Regulation (Perpres), following a government decision that a specific legal umbrella is required for the programme.

The Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources (ESDM), Eniya Listiani Dewi, stated that the government is currently discussing the incentive concept with several stakeholders.

“Essentially, there must be a Presidential Regulation to oversee the incentives. The decision was made recently that a Perpres is necessary,” Eniya told ANTARA in Jakarta on Wednesday.

Eniya mentioned that the concept of the incentives themselves is still in the discussion stage, involving various parties, including the State Secretariat, developers, the Ministry of Industry, and the Ministry of Finance, all of whom are part of the Energy Transition Task Force.

The regulation in question refers to Presidential Regulation Number 79 of 2023, which is the official amendment to Presidential Regulation Number 55 of 2019 regarding the Acceleration of the Battery-Based Electric Vehicle (KBLBB) Programme for Road Transportation.

“Because the existing regulation does not mention incentives, Perpres 55 was subsequently revised to 79. Now, we will implement another amendment,” she said.

She noted that the current consensus within government discussions is the need for a draft Presidential Regulation to serve as the regulatory umbrella for electric motorcycle incentives.

“As for what the incentive concept will look like, we are currently discussing it with various stakeholders,” Eniya added.

Previously, the government proposed an electric motorcycle incentive of IDR 5 million per unit, which later changed to IDR 3 million per unit. This amount is lower than the electric motorcycle subsidy programme for 2023-2024, which reached IDR 7 million per unit. The electric motorcycle incentives were previously planned to take effect at the earliest by September 2026.

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