Government Aims to Save Fuel Consumption, Celios Supports Electric Motorcycle Conversion Policy
The Center of Economic and Law Studies (Celios) believes that the government’s electric motorcycle conversion programme will enhance energy efficiency while promoting local economic growth. Celios Executive Director Bhima Yudhistira views this step as offering dual benefits, both in terms of saving fuel oil (BBM) and strengthening the small business sector. According to Bhima, switching from fossil fuel motorcycles to electric ones can reduce BBM usage, which also directly impacts environmental quality.
“Additionally, noise levels will drop drastically, accompanied by a reduction in exhaust gas pollutants,” he said on Thursday (26/3/2026).
He explained that the programme also holds significant potential to drive local economic growth. This is because the economic multiplier effect will be even higher if the government involves alternative workshops in the conversion process, rather than relying solely on official workshops or authorised vehicle manufacturers.
“Village workshops can be trained and provided with electric motorcycle conversion kits,” he stated.
He added that a similar approach was once implemented by the French government in its electric vehicle conversion programme, which successfully expanded participation from small businesses while accelerating the adoption of eco-friendly technology.
To encourage public interest, Bhima emphasised the importance of education and incentives. Some proposed incentives include exemption from the vehicle ownership tax for converted motorcycles, as well as free licence plate renewal fees.
Not only that, incentives should also be given to market players for second-hand electric motorcycles from conversions, such as exemption from ownership transfer fees. This step is believed to increase attractiveness and expand the electric vehicle market in Indonesia.
Previously, the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the government will form an energy transition task force to accelerate the implementation of the programme, including the conversion of conventional motorcycles to electric ones.
Bahlil made this statement after attending a limited meeting with President Prabowo Subianto at the Presidential Palace Complex in Jakarta on Thursday (5/3/2026). He mentioned that the task force is being formed to speed up the conversion of conventional motor vehicles, numbering 120 million units, into electric motorcycles.
“The President has formed a task force team to accelerate this. And today, we were given the task by the President as the Task Force Chairman to carry it out and translate it quickly,” Bahlil said.
According to Bahlil, the President targets the programme’s implementation to run at maximum within three to four years, and it is hoped that it can be realised even faster.