Electric motorcycles eligible for Rp3 million incentive
The government is preparing a purchase incentive of Rp3 million per unit for electric motorcycles, planned to begin in September 2026. However, the list of models and technical rules for incentive recipients is still awaiting official government regulation.
The incentive amount is a change from the previous plan. Finance Minister Purbaya Yudhi Sadewa said the government has prepared a budget of around Rp3 trillion for the programme. By calculation, the budget could cover up to 1 million units if all received the Rp3 million incentive.
Nevertheless, the government estimates national electric motorcycle production capacity until the end of 2026 will only be around 100,000 units. Therefore, the realisation of incentive distribution is not expected to immediately reach the maximum quota.
For now, Alva and Gesits are the two brands directly mentioned by the government as prospective recipients of the incentive programme. Coordinating Minister for Economic Affairs Airlangga Hartarto previously mentioned both manufacturers in discussions on the electric motorcycle programme. Alva is produced by PT Ilectra Motor Group (IMG), while Gesits is produced by PT Gesits Motor Nusantara.
However, the mention of these two brands cannot yet be interpreted as meaning all Alva and Gesits models will automatically receive the Rp3 million discount. The government is still preparing technical rules that will determine which vehicles and consumers meet the requirements.
Several Alva models currently marketed that could be options if included in the programme requirements include Alva Cervo, Cervo X, Cervo Q, N3 Next Gen and One XP. As an illustration, if the Rp3 million incentive is applied to current listed prices, the Alva Cervo price of around Rp35.75 million could become Rp32.75 million. The Alva Cervo X from around Rp32.9 million to Rp29.9 million, while the Alva N3 Next Gen and One XP, each around Rp31.5 million, would become around Rp28.5 million.
It should be noted that these figures are simulations, not official prices after subsidy. Final prices can only be known after the government establishes the programme mechanism and the vehicle models that actually receive the incentive.
Meanwhile, several Gesits models currently available include Gesits G1, Gesits GV1 Standard Range, Gesits GV1 Long Range and Gesits Raya. Based on prices compiled in August 2026, the Gesits G1 is in the range of Rp28.27 million. If it receives the Rp3 million incentive, the simulated price becomes around Rp25.27 million.
The Gesits GV1 Standard Range, in the range of Rp23.956 million, could become around Rp20.956 million after the Rp3 million reduction. Meanwhile, the Gesits GV1 Long Range at around Rp29.9 million would become around Rp26.9 million, and the Gesits Raya at around Rp26.5 million would become around Rp23.5 million.
Again, these calculations are only simulations based on the incentive amount being prepared by the government and are not official price determinations.
The requirements for receiving the Rp3 million incentive have not been finally established through the latest technical rules. The government is still preparing regulations that will serve as the basis for programme implementation, including provisions on vehicles and consumers entitled to receive the incentive.
Therefore, the public should not immediately assume that every electric motorcycle produced in Indonesia automatically receives the Rp3 million discount. Previously, the electric motorcycle incentive scheme used a number of vehicle requirements, including provisions on domestic component levels (TKDN). However, the provisions applicable to the new Rp3 million programme must await official government regulation to avoid errors.
The government is targeting the electric motorcycle incentive programme to begin distribution in September 2026. Finance Minister Purbaya Yudhi Sadewa said the programme is still in the preparation stage and technical rules are needed before it can be implemented.
Thus, prospective buyers should wait for official announcements regarding the programme start date, the list of eligible models, the purchase mechanism, and how to obtain the discount. The programme is expected to increase the use of electric two-wheeled vehicles while encouraging the development of the domestic electric motorcycle industry. The government is also considering national production capacity so that incentive implementation can be adjusted to industry conditions and public demand.