Electric Motorcycle Incentives Prepared, Airlangga: Budget Already Available
Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that the government is still finalising the incentive scheme for electric motorcycles and has prepared the budget for it.
“The scheme is being finalised, but the President has already approved it. The budget is actually already available,” Airlangga said when met after the Press Conference on the Financial Note and the 2027 State Budget Draft held at the Directorate General of Taxes Head Office in Jakarta on Friday (14/8/2026).
Airlangga said the electric motorcycle incentive would later be aligned with the electric motorcycle ecosystem that has already been prepared. First of all, he said, it would certainly be viewed from the battery side.
“For the products, one of them is Alva, and the second is Gesits,” Airlangga said.
President Prabowo Subianto inaugurated the national domestically produced electric motorcycle and its supporting ecosystem at the production facility of PT Ilectra Motor Group (ALVA) in Cikarang, Bekasi Regency, West Java, on Thursday (13/8/2026).
On that occasion, Prabowo praised the courage of private business players, especially those willing to take the risk of producing national electric motorcycles amid the onslaught of competition from Chinese, Japanese, and South Korean electric motorcycles.
Then, in the Government’s Introductory Statement on the Bill on the 2027 State Budget and its Financial Note in Jakarta on Friday, Prabowo Subianto announced that the government would provide incentives for one million electric motorcycles produced domestically by Indonesian companies, as part of accelerating the electrification of public mobility.
“Today we announce that we will provide substantial incentives for those who can build one million electric motorcycles produced domestically by Indonesian companies,” Prabowo said.
President Prabowo said the policy is part of the government’s efforts to reduce imports of fuel oil while accelerating the use of electric vehicles.
He said the electric motorcycle production incentive has three objectives: lowering vehicle costs for the public, reducing imported fuel consumption, and enlarging the national electric motorcycle industry along with its supply chain of batteries, components, software, and after-sales services.
He also said Indonesia already possesses nearly all the elements needed in the electric vehicle battery supply chain.