Indonesia delays electric motorcycle incentive launch until next month

He said deliberations on the most suitable incentive scheme are unlikely to conclude in June as initially planned.

“Incentives for electric motorcycles are still under review. The discussion will take another month,” Airlangga remarked in Jakarta on Monday (June 22).

He stressed that the government deems it necessary to have follow-up talks to ensure the incentive program has a proper implementation mechanism before being launched.

On May 5, Finance Minister Purbaya Yudhi Sadewa first unveiled plans for an incentive package covering 100,000 electric cars and 100,000 electric motorcycles in its initial phase.

“We will provide incentives, initially targeting 100,000 electric cars, and we will disburse more once the quota is met,” he said at the time.

“The same applies to 100,000 electric motorcycles in the first stage,” Purbaya added.

He noted that the amount of incentives would soon be announced following talks with relevant institutions, though he estimated support for electric motorcycles at Rp5 million (around US$287) per unit.

Purbaya explained that the policy partly stemmed from his meeting with the industry minister, who proposed fiscal measures to boost electric vehicle appeal amid mounting global pressures on Indonesia’s energy costs.

The minister later said on May 12 that accelerating the transition to electric vehicles could help Indonesia reduce fuel imports and ease pressure from rising oil prices linked to conflict in the Middle East.

“The war seems to be dragging on. This means our fuel consumption will rise at higher prices. If possible, I want to shift to electric (vehicles) in order to significantly reduce (fuel) imports,” he remarked.

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Translator: Bayu Saputra, Tegar Nurfitra