Indonesian Political, Business & Finance News

Purbaya Gives Latest Update on Electric Motorcycle Incentive Implementation

| Source: CNBC Translated from Indonesian | Economy
Purbaya Gives Latest Update on Electric Motorcycle Incentive Implementation
Image: CNBC

Finance Minister Purbaya Yudhi Sadewa will soon meet Industry Minister Agus Gumiwang Kartasasmita to finalise the electric motorcycle incentive policy. He estimates that the subsidy policy could be running by September this year. “It should be running by September,” Purbaya told reporters on Tuesday (18/8/2026).

Previously, the Industry Minister said he was still waiting for the Finance Ministry to implement the purchase subsidy incentive for new electric motorcycles, valued at Rp5 million per unit.

Meanwhile, Suwandi Wiratno, Chairman of the Indonesian Financing Companies Association (APPI), believes that the use of electric motorcycles in society still faces a number of major challenges, one of which relates to vehicle usage patterns and the readiness of supporting facilities. He therefore considers that incentives alone are not enough.

He sees ownership patterns as one of the matters that need attention when the government wants to expand the use of electric motorcycles. Besides price and financing, consumers will also consider how the vehicle is used on a daily basis.

Another issue arises from the need for energy charging. Electric motorcycles require a different charging pattern from petrol motorcycles, while users with high mobility need fast and easy access to energy.

The battery swap concept is one alternative. However, the larger the number of electric motorcycle users, the greater the need for a battery swap network capable of supporting public mobility.

The readiness of such facilities becomes increasingly important if electric motorcycles are used for longer journeys. The government and industry players need to take into account the location of battery swap facilities and their capacity as the electric motorcycle population grows.

“Can this electric motorcycle be used for long distances? Where do you swap the battery? Is it available at rest areas?” he said.

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