Energy Ministry to Continue Electric Motorcycle Conversion Programme with Revised Incentive Scheme
The Ministry of Energy and Mineral Resources (ESDM) is re-evaluating the policy for converting conventional motorcycles to electric motors for this year, which had previously been paused. This study aims to find a more appropriate incentive scheme to accelerate the adoption of electric vehicles among the public.
The Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of ESDM, Eniya Listiani Dewi, explained that the plan to extend the regulation is still in the drafting stage. She mentioned that the ministry is collaborating with academics and technical teams to determine the best concept for the programme’s continuation.
“The electric motorcycle conversion carried out by the Ministry of ESDM so far has been in accordance with the ministerial regulation until 2024. At that time, I wanted to revise the regulation to decide whether it should be extended or not. It is still in draft form,” she said when met at the Ministry of ESDM office in Jakarta.
The study involves various parties, ranging from the Ministry of Science and Technology to educational institutions such as ITB and ITS. The primary focus of the assessment is the amount of government assistance and the involvement of the private sector through Corporate Social Responsibility (CSR) funds to ensure the programme does not burden the public.
“Regarding the 2026 programme, I am currently conducting a study to see if the future concept will remain the same as before. We have requested studies from the Ministry of Science and Technology, the BBSP team within our ministry, ITB, and also ITS,” she continued.
In previous electric motorcycle conversion programmes, the government provided an incentive of IDR 10 million per unit from a total conversion cost of approximately IDR 15 million. Eniya revealed that efforts were made through corporate CSR movements to cover the remaining IDR 5 million per unit to provide free conversion services to motorcycle owners.
“The conversion unit requires 15 million. The remaining 5 million was to be borne by the individual. However, I initiated a CSR movement to cover that 5 million, so the conversion was free for the owner,” she added.
The government also provides added value for companies that allocate CSR to support this conversion programme through the PROPER assessment by the Ministry of Environment. Under this mechanism, contributing companies can earn additional points that positively impact their corporate sustainability reports.
“If they allocate CSR funds for electric vehicle conversion, they receive 5 points. Because they get points, they are encouraged to provide that CSR,” she concluded.
Previously, the Minister of Energy and Mineral Resources, Bahlil Lahadalia, revealed plans to accelerate the conversion of conventional motorcycles to battery-powered electric motors. To achieve this, the government will provide subsidy programmes similar to previous ones.
Bahlil made this statement following a limited meeting at the State Palace regarding the acceleration of clean energy implementation, including the construction of 100 Gigawatts of solar power plants and the conversion of 120 million motorcycles to electric battery engines, on Thursday (5/3/2026).
“Something like that (subsidies), but we will find a good formulation,” said Bahlil when asked about the acceleration programmes the government will provide.
Previously, the government provided subsidies for the conversion of 200,000 electric motorcycle units, which ended in 2024. However, the subsidies worth IDR 7 - 10 million were not continued by the government at that time.
According to Bahlable, the value of this subsidy programme will be cheaper than before. He estimated the subsidy would be around IDR 5 - 6 million per unit, as the technology has become significantly more affordable.
“But now, cheaper technology is emerging, so it might be around 5 to 6 million, making it more affordable. The government will strive to be present to help reduce the burden of conversion costs,” said Bahlil.
Furthermore, the General Chair of the Golkar Party has not yet disclosed the target for the first phase of this conversion programme, as the ministry is still conducting work and calculations regarding the matter.