Government Prepares Incentives for Motorcycle-to-Electric Conversion Programme

Jakarta – Energy and Mineral Resources Minister Bahlil Lahadalia has stated the government is preparing incentive schemes for a programme converting petrol-fuelled motorcycles to electric vehicles.

This follows the government’s plan to convert 120 million motorcycles, with the programme commencing this year. The minister confirmed there would be “sweeteners” or incentives to attract public participation in converting their vehicles.

According to Bahlil, who also chairs the national energy transition acceleration task force, this programme forms part of the government’s long-term strategy to shift vehicle usage from fossil fuel-based to battery-based power. The initiative aims to reduce pollution levels whilst supporting the development of renewable energy in Indonesia.

“This is a long-term measure to reduce our pollution. This is part of the new energy required,” he stated.

However, Bahlil did not specify the amount of incentives to be provided. He indicated the assistance scheme remains under discussion within the newly established task force formulating the policy.

“We have just completed the task force formation. I will hold task force meetings first before reporting back,” he said.

Previously, Bahlil identified accelerating the conversion of 120 million petrol-fuelled motorcycles to electric vehicles as a primary focus of the national energy transition acceleration task force, aimed at reducing dependence on fuel subsidies.

“We will attempt to gradually convert these 120 million petrol motorcycles to electric vehicles,” he stated at the Presidential Palace complex in Jakarta on Thursday, 5 March 2026.

The energy transition acceleration also serves as a strategic measure to reduce the burden of energy subsidies on the state budget.

“God willing, we will implement this within a relatively short timeframe. The President mentioned a maximum of 3 to 4 years, or even faster if possible,” he added.