Prabowo Extends Subsidy Up to Rp6 Million per Unit to Convert Gasoline-Powered Motorcycles to Electric

Jakarta – CNBC Indonesia: Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has outlined plans to accelerate the conversion of conventional motorcycles to battery-electric engines. To this end, the government will implement a subsidy programme as before.

This was stated by Bahlil after a limited meeting at the State Palace, regarding speeding up the deployment of clean energy such as the 100 gigawatt solar power project and the conversion of 120 million motorcycles to battery-electric motorcycles, on Thursday 5 March 2026.

‘Something like that (the subsidy), but we will find a good formulation,’ Bahlil said when asked about the acceleration programme the government will provide.

Previously, the government had also provided subsidies for the conversion of 200,000 motorcycles to electric power which ended in 2024. However, subsidies of Rp 7-10 million per unit were not continued.

According to Bahlil, the subsidy value for this programme will be cheaper than before. He estimated subsidies of Rp 5-6 million per unit, because technology had become much cheaper.

‘But now there is technology that is cheaper, so perhaps around Rp 5-6 million, so it is cheaper. And the government will endeavour to be present together to ease the burden on people in the conversion,’ Bahlil said.

Moreover, the Golkar Party chairman has not yet disclosed targets for the first stage of motor conversions. At present, authorities are still conducting work and calculations related to this matter.

As is known, after the limited meeting, President Prabowo also formed a Task Force to accelerate the PLTS construction programme and the conversion of motorcycles to electric. According to Bahlil, the task force will be chaired by the Minister of ESDM, the Minister of Investment and Integrated Licensing/HKPM (Head of BKPM), and including the Minister of Education, Culture, Research and Technology.

‘The president has stated that the target is a maximum of 3-4 years, perhaps faster. And because of that, the president formed the Task Force to accelerate this,’ Bahlil said.