Government Delays Electric Motorcycle Incentive Rollout

The government has postponed the implementation of incentives for the purchase of electric motorcycles for the next month.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the delay is due to the incentive scheme still being under review. “The electric motorcycle incentives are being reassessed, with an additional month of study,” Airlangga said in Jakarta on Monday.

The fiscal assistance programme was previously scheduled to take effect in June 2024. However, Airlangga explained that the delay is necessary as the government still needs to maturely discuss the programme’s implementation mechanism before its official launch.

For electric motorcycles, the government estimates the incentive value to be IDR 5 million per unit. However, the final amount and scheme for the assistance will be announced further once discussions with relevant ministries and agencies are completed.

He also argued that electric vehicle incentives are provided to reduce fuel imports amidst global oil prices, which are expected to remain high over the coming months. Furthermore, the electric vehicle incentive programme is one of the government’s efforts to accelerate the adoption of environmentally friendly vehicles.