Indonesian Political, Business & Finance News

Electric Motorcycle Incentives Unpaid, Moeldoko Offers Unexpected Words

| Source: CNBC Translated from Indonesian | Economy
Electric Motorcycle Incentives Unpaid, Moeldoko Offers Unexpected Words
Image: CNBC

The national electric vehicle industry is calling on the government to provide certainty regarding incentive policies, particularly for electric motorcycles. The uncertainty of the programme is believed to be exerting pressure on sales and the business continuity of dealerships.

Moeldoko, Chairman of the Indonesian Electric Vehicle Industry Association (Periklinsdo), stated that the government should not hesitate to provide electric vehicle incentives, as the benefits are felt not only by consumers but also by the government.

“If the government benefits from it, do not hesitate to provide incentives. Why are the incentives moving back and forth, inconsistent like mucus?” Moeldoko said during a working meeting with Commission VII of the Indonesian House of Representatives (DPR RI) on Monday (21/09/2026).

Fluctuating policy patterns make it difficult for industry players to make business decisions. Consumers also tend to delay purchases while waiting for certainty regarding the incentives.

“So sometimes hope is given, and the next day we are waiting again for when it will be provided. Consequently, what happens? All our dealers and manufacturers are stuck right now,” he said.

This condition does not only impact electric vehicle sales. If it persists, the pressure could threaten the survival of dealerships.

“With being stuck, the risk is that many dealers will die. Why? Because the public is waiting, waiting for when this subsidy will be provided? In the end, they do not buy motorcycles,” he said.

He assessed that the government needs to provide certainty so that consumers and the industry are not left in a state of waiting. In his view, policy certainty is also vital for investment and the development of the electric vehicle ecosystem.

“This is a major issue. Therefore, I request that the House of Representatives also provides full support so that the government does not hesitate to provide incentives,” Moeldoko emphasised.

He also requested that the incentive scheme not be provided only in the short term. This is because the industry requires certainty to formulate business plans and investments. He proposed that the government provide incentive certainty for at least three years.

“Currently, the policy regarding incentives is for one year, then there is another promise, but we are waiting and it hasn’t arrived; later perhaps they will remember to give it for another year. This does not bring certainty to industry players,” he said.

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