Fuel Subsidy Restructuring Seen as Catalyst for Electric Motorcycle Adoption

The Indonesian Electric Motorcycle Industry Association (AISMOLI) believes the government’s plan to restructure the distribution of subsidised Pertalite fuel is a significant opportunity to accelerate the transition to more efficient and low-emission vehicles. AISMOLI Chairman Budi Setiyadi stated that the policy should not be seen merely as an effort to improve subsidy targeting, but as a catalyst for changing energy consumption patterns. “This subsidy restructuring is the right moment to expand public choice. If people use more efficient vehicles for their daily needs, dependence on fuel oil will also decrease,” he said in a statement confirmed in Jakarta on Friday. The potential is considerable, given that the number of motorcycles in Indonesia reached approximately 139.45 million units based on 2025 data from the national statistics agency. With such a massive population, the electrification of two-wheeled vehicles is expected to have a significant impact on fuel consumption and emissions. The Ministry of Energy and Mineral Resources estimated in 2022 that the use of 900,000 electric motorcycles could reduce fuel consumption by around 320 million litres per year and cut Pertalite compensation by approximately Rp480 billion. Users could also potentially save around Rp2.68 million per year in fuel costs. However, AISMOLI noted that accelerating electrification cannot rely solely on changes to fuel policy. The association emphasised that the availability of safe, quality products, competitive pricing, spare parts, after-sales service, battery charging and swapping infrastructure, and consumer protection are critical factors. Strengthening the national industry must also proceed in tandem, through increased use of domestic components and the development of local suppliers. This transition is therefore not just a change in vehicle technology, but part of a broader effort to build efficient mobility while reducing Indonesia’s dependence on fuel oil. President Prabowo Subianto recently inaugurated a national electric motorcycle (MOLINAS) and its supporting ecosystem at the production facility of PT Ilectra Motor Group (ALVA) in Cikarang, West Java.