Indonesian Political, Business & Finance News

Purchase of 21,000 Electric Motorcycles for SPPG Cancelled, Finance Minister Reveals the Real Reason

| | Source: MEDIA_INDONESIA Translated from Indonesian | Regulation
Purchase of 21,000 Electric Motorcycles for SPPG Cancelled, Finance Minister Reveals the Real Reason
Image: MEDIA_INDONESIA

The government has finally confirmed that the purchase of electric motorcycles for the Heads of Nutrition Fulfilment Service Units (SPPG) will not proceed this year. This decision was conveyed by Finance Minister (Menkeu) Purbaya Yudhi Sadewa after clarifying with the National Nutrition Agency (BGN), which had previously proposed the purchase of 21,800 electric motorcycle units to support the Free Nutritious Meals Programme (MBG).

“I asked last night, is there any this year? No, there isn’t. So this year, there will be no more purchases,” said Purbaya at the Ministry of Finance office in Jakarta on Thursday (9/4).

The Finance Minister acknowledged a miscommunication in last year’s electric motorcycle procurement. Initially, he thought the proposal had been rejected. However, it turned out that part of the procurement process had already proceeded before he became aware of it.

“Last year, there was a miscommunication, perhaps from my subordinates to me. As far as I remember, I asked and it was rejected. But it turned out that some had already passed,” explained Purbaya.

Purbaya also suspected that the procurement proposal might have been submitted before he took office as Finance Minister, so he could not monitor the entire process.

“It might have been proposed before I became minister, so I didn’t know. But we’ll look into it going forward; clearly, there will be no more in the future,” he stressed.

Meanwhile, BGN provided an explanation regarding the viral video of electric motorcycles on social media. BGN Head Dadan Hindayana emphasised that the procurement of these electric motorcycles was actually planned in the 2025 budget and is part of the operational support for the MBG Programme.

“The procurement of these electric motorcycles was planned in the 2025 budget as part of the operational support for the MBG Programme, specifically to enhance the mobility of Heads of Nutrition Fulfilment Service Units,” Dadan stated in his official remarks.

According to Dadan, although the electric motorcycles are included in the 2025 budget, the administrative realisation of the procurement will only occur in 2026. This is due to the end-of-budget process that must go through official government mechanisms.

Dadan explained that at the end of 2025, the Commitment Making Official (PPK) had submitted a Payment Instruction Letter (SPM), so the budget for purchasing the electric motorcycles was included in the End-of-Fiscal Year Fund Holding Account (RPATA).

“This mechanism complies with PMK 84 of 2025, where payment is made in two stages: the first instalment for 60% of the units and the second after completion of 100% of the units,” he clarified.

However, although the procurement was initially planned for 25,644 electric motorcycle units, only 21,801 units could be completed by the end of the opportunity period on 20 March 2026.

“The remaining funds that have been held will be returned to the state treasury along with the second stage payment,” said Dadan.

BGN also confirmed that all the produced electric motorcycles are domestically made with a Domestic Component Level (TKDN) of 48.5%. Production takes place at a factory in Citeureup, West Java.

“This is part of our efforts to support programme operations while promoting the national industry by using domestic products,” said Dadan.

Currently, the electric motorcycles are still in the administrative completion stage as State Goods (BMN). After the administrative process is finished, the vehicles will be distributed gradually to beneficiaries in need in each region.

“The electric motorcycles have not yet been distributed. We ensure that all administrative processes are completed so that their use is orderly, transparent, and accountable,” Dadan concluded.

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