Petrol Motorcycles Could Be Traded In for Electric Motorcycles, Businessman Proposes Scheme

Jakarta, CNBC Indonesia - A trade-in programme for exchanging petrol motorcycles for electric motorcycles has the potential to become a new instrument to accelerate the transition away from conventional vehicles. The scheme could also target the existing population of petrol motorcycles already in use by the public.

The concept is not merely about giving discounts to owners of old vehicles. Petrol motorcycles entering the programme would be directed out of circulation so that they are not used again as everyday vehicles.

This step is closely related to the government’s efforts to reduce fuel oil (BBM) consumption. The more conventional motorcycles that are replaced by electric vehicles, the greater the potential reduction in fuel demand for two-wheeled transport.

“Indeed, the President earlier conveyed concerns regarding the large amount of fuel subsidy costs that have been allocated. So, to reduce fuel subsidies, the President also mentioned the matter of trade-in or exchange,” Budi told CNBC Indonesia on Sunday (23/8/2026).

The scheme could deliver two impacts on the market at once. Consumers would get an easier route to replace their vehicles, while the government would have an instrument to encourage a gradual reduction in petrol-fuelled vehicles.

The value of the old motorcycle will be an important part of the mechanism. The clearer the price and the assessment process for old vehicles, the easier it will be for consumers to calculate the difference in cost they must pay to obtain an electric motorcycle.

“So the old motorcycle may be valued at a certain amount, and then the value of the old motorcycle is applied towards the electric motorcycle,” said Budi.

However, the success of the programme is not only determined by the transaction mechanism at the outlet. Old vehicles that have entered the programme also need to be ensured not to return to the used vehicle market and be used by new owners.

Therefore, the management of trade-in vehicles is an important part of the scheme. The process of ending the use of old vehicles must have a clear mechanism so that the goal of reducing fuel consumption does not lose its effectiveness.

“But the old motorcycle should not be sold again; perhaps it should be scrapped directly, not allowed to be used again, because the core aim is to replace the old motorcycle with a new one so that there will be a reduction in fuel subsidies,” said Budi.

Previously, President Prabowo offered petrol motorcycle users the option to switch to electric motorcycles. According to Prabowo, the government is currently considering the scheme.

“But don’t worry, we have schemes for those who already own petrol motorcycles; we are thinking about how we can do a trade-in. You hand over your old motorcycle, get a new one, and just add a little bit more,” he said.