Readiness and Challenges in Accelerating Electric Motorcycle Conversion in Indonesia

SOLO, KOMPAS.com - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, stated that the government is preparing incentives for the programme to convert petrol-fuelled motorcycles into electric motorcycles. This follows the government’s plan to convert 120 million motorcycles, which will begin this year. According to the view of the Indonesian Electric Motorcycle Industry Association (Aismoli), the readiness of the electric motorcycle conversion industry in Indonesia is basically sufficient, but it still requires ecosystem support and policies to be optimal. “Industry players are ready to fully support the government’s accelerated conversion programme. Both converting petrol motorcycles to electric via modification or new products,” said Budi to KOMPAS.com on Friday (27/3/2027). From the business players’ side, whether producers, conversion workshops, to the supply chain, there are no major obstacles to implementing the programme. “It has been running from 2023 to 2024 for the electric motorcycle conversion programme. This shows that structurally, the industry foundation for conversion is already available and can be expanded. Aismoli assesses that the government’s focus on conversion is a strategic step because the number of petrol motorcycles in Indonesia is very large. They also remind that there must still be a balance with the production of new electric motorcycles. Considering that there are already many electric motorcycle producers in the country. Although the industry is ready, Aismoli sees the main problem on the public demand side, which is still low because awareness of the programme is still lacking. The conversion programme greatly depends on government subsidy support. Aismoli welcomes the continuation of incentive plans positively because they are considered important to attract public interest, maintain industry sustainability, and accelerate electric vehicle adoption.”No matter what, the cost of electric motorcycle conversion requires quite a substantial amount, depending on the battery capacity and type; the cheapest is still above Rp10 million, around Rp13 million; if there are incentives, it will be more affordable,” said Budi. Even the industry states it is ready to meet the surge in demand if socialisation and incentives run effectively. “Currently, we are still waiting for details of the government’s strategy; hopefully, it can increase public interest,” said Budi.