Purbaya Seeks to Revive Electric Motorcycle Subsidy, Initial Phase Targets 6 Million New Units

JAKARTA, KOMPAS.com - Finance Minister Purbaya Yudhi Sadewa revealed that the government is formulating a revived programme for subsidising electric motorcycles. The initial phase is directed at around 6 million new motorcycle units. The scheme under discussion does not immediately convert all petrol-fuelled motorcycles. The approach begins with the sale of new motorcycles and is carried out in stages. “As for electric motorcycles, there is a programme, and there will be ideas to replace all the motorcycles here. How many is that? 120 million motorcycles? That’s a lot, right? If it were me, I propose we provide the new ones first, the first batch being 6 million motorcycle sales. We will, but not all at once. Then we see it step by step. But for the new ones, we will try to create a programme, yes,” said Purbaya during a media briefing at the Financial Education and Training Agency in South Jakarta on Friday (24/4/2026). Initial studies point to a subsidy of around Rp 5 million per unit. The incentive value could still change according to the final scheme. “Not all of them, step by step. The subsidy might be 5 million per motorcycle, 5 million rupiah, or more,” he said. If applied to 6 million units, the budget requirement would reach around Rp 30 trillion. Discussions are being conducted across ministries. The talks involve Industry Minister Agus Gumiwang Kartasasmita and Coordinating Minister for Economic Affairs Airlangga Hartarto. “I discussed it with the Industry Minister. We haven’t met yet. Several times. But I have already discussed it with Mr Airlangga as well. He agrees with the number that will be regulated accordingly,” he stated. This programme opens the possibility of reusing fiscal incentives for electric vehicles. The prepared approach is more gradual. The focus is directed at expanding the market for new electric motorcycles. This strategy differs from a massive conversion push. The national motorcycle count is estimated at 120 million units. The government is striving to balance the energy transition with fiscal capacity. Domestic industry readiness is also a primary consideration.