Electric Motorcycles: Can They Survive Without Subsidies in 2026?
JAKARTA – The government subsidy programme for electric motorcycle purchases has proven effective in accelerating market adoption among the public. However, in 2025, the government ceased providing purchase subsidies for electric motorcycles, resulting in a temporary correction in vehicle sales.
Pius Wirawan, Chief Executive Officer of Indomobil Emotor, believes that whilst subsidies do help boost public interest in the initial stages, the market should operate sustainably without relying on incentives in the long term. “I have long been part of the group that agrees subsidies should be discontinued. Why? Because the purpose of this subsidy is to increase adoption rates,” Pius said in Jakarta on Thursday (12 March 2026).
“Because the subsidy amount is quite substantial, when the subsidy stops or issues emerge about its potential return, this creates delays among consumers. In my view, this is not sustainable, so the market becomes unstable,” he added.
Electric motorcycles offer numerous inherent advantages beyond subsidies, including operational cost savings, lower emissions compared to petrol-fuelled motorcycles, and significantly reduced noise levels. “So in my opinion, electric motorcycles without subsidies already have advantages. Electric motorcycles offer comfort and provide strong reasons why people should buy them instead of petrol motorcycles,” Wirawan stated.
“Additionally, there is also the savings factor, which represents a considerable amount,” he said.
When first implemented, subsidies were provided with specific conditions, including limited quotas and recipients meeting certain criteria. In 2024, regulations were expanded to allow more people to benefit from the programme. However, entering 2025, the government did not continue the electric motorcycle purchase subsidy.
Despite this, public interest in environmentally friendly vehicles has remained steady. This is evident from national electric motorcycle sales figures, which still reached 55,059 units based on Type Test Registration Certificate (SRUT) data. Whilst this figure is lower than 2024’s 77,078 units, it demonstrates that the electric motorcycle market continues to function without subsidies.