Incentives for Electric Motorcycles Still Under Review, Scenarios Already Prepared
JAKARTA - The Ministry of Industry (Kemenperin) has revealed that incentives for battery-based electric motorcycles for this year are still in the cross-ministerial discussion stage.
Director General of Metal, Machinery, Transportation Equipment, and Electronics Industry (ILMATE) of Kemenperin, Setia Diarta, stated that the policy direction is indeed leaning towards the possibility of providing incentives, but the process is not yet complete.
“Regarding the electric motorcycle incentives, they are still in the discussion stage. So, if I may say, there is indeed an agenda towards that, but the talks are not finished yet,” said Setia in Jakarta on Wednesday (22/4/2026).
However, on the other hand, the government is also wary of the potential for demand to stagnate due to consumers choosing to wait for incentive certainty, as has happened previously.
“Hopefully, it will develop later,” he said.
Setia did not detail the form or amount of the incentives being formulated. However, the discussed scheme is certain to cover not only new electric motorcycles but also vehicles resulting from conversions from fuel-engine to electric.
“Its position is still in the discussion stage and there is no decision yet. The scenarios have been prepared,” said Setia.
Similar signals previously came from Finance Minister Purbaya Yudhi Sadewa, who mentioned that the government is coordinating with the Ministry of Industry to formulate a new incentive scheme, particularly for the latest generation electric motorcycles.
“I will still discuss it with the Minister of Industry, approximately there will be incentives for new electric motorcycles,” said Purbaya.
“We are talking with the Ministry of Finance specifically for electric motorcycle incentives,” said Agus.
As a note, the government previously provided incentives of Rp 7 million for the purchase of one unit of electric motorcycle since 2023. That programme continued in 2024 with a limited quota of 60,000 units.
After the quota was exhausted, the policy was stopped and has not been resumed to date.