INDEF Confident Electric Motorcycle Conversion Saves Energy and Boosts Industry

Jakarta (ANTARA) - The Institute for Development of Economics and Finance (INDEF) is convinced that the government’s electric motorcycle conversion programme will provide efficiency and energy savings while boosting domestic industry growth. INDEF Executive Director Esther Sri Astuti, contacted in Jakarta on Thursday, assessed that this policy, which converts oil-fuelled (BBM) motorcycles to electric ones with government subsidies, is not only aimed at reducing emissions but also at improving energy use efficiency and strengthening the component industry. “In my view, converting to electric motorcycles is far more energy-efficient and can reduce daily operational costs by up to 80 per cent, or one-fifth of conventional BBM costs,” said Esther. She added that to make the benefits of this programme even more optimal, policy support needs to be expanded beyond just purchase subsidies. INDEF urges the government to simplify administrative processes, including vehicle documents and annual taxes, as well as to increase charging infrastructure. On the other hand, Esther noted that there are still challenges in implementing this programme, particularly the relatively slow conversion rate compared to the total motorcycle population in Indonesia. Additionally, the equitable distribution of charging infrastructure remains a task that needs to be addressed promptly. Nevertheless, she views this situation as opening up major opportunities for the development of the local component industry. With the increasing demand for electric motorcycles, the domestic supply chain has the potential to grow and provide positive impacts on the national economy. “However, this is a major opportunity to boost the local component industry,” said Esther.