Finance Minister Purbaya Proposes Electric Motorcycle Incentives to Be Implemented This Year, Initial Study Rp5 Million

Finance Minister Purbaya Yudhi Sadewa has proposed a programme of incentives for electric motorcycles to be implemented this year. The incentives are planned to be rolled out in stages. In the initial phase, the programme is targeted to cover around 6 million motorcycle units.

“I propose that we provide (incentives) for new ones first. The first batch is 6 million motorcycle sales, but not all at once. We will look at it in stages. But for the new ones, we will try to create the programme,” said Purbaya during a media briefing in Jakarta on Friday (24/4/2026).

Purbaya explained that the programme is still in the study phase and will be discussed further with Industry Minister Agus Gumiwang Kartasasmita and Coordinating Minister for the Economy Airlangga Hartarto.

The initial study points towards providing a subsidy of around Rp5 million per unit. However, the amount is still subject to potential changes as the policy is finalised.

“It has already been discussed. The number of motorcycles to be subsidised will still be considered, and we want to show what it will look like. But clearly, I will first discuss it with the Industry Minister, the Coordinating Minister (for the Economy), and we will report back to the President in accordance with the instructions at that time,” he said.

Purbaya stated that the incentives are being prepared as part of the government’s plan to replace all conventional motorcycles in Indonesia with electric motorcycles.

This policy aligns with the government’s target to gradually convert around 120 million petrol-fuelled motorcycles to electric ones over the next three to four years.

The programme, driven by President Prabowo Subianto, aims to accelerate the transition to clean energy while reducing the burden of fuel subsidies.