Indonesia Accelerates Electric Motorcycle Incentives with Subsidy Proposals Up to Rp10 Million Per Unit

Indonesia’s electric motorcycle subsidy program will continue with a reduced benefit of Rp 5 million per unit, down from the previous Rp 7 million, according to government officials.

The announcement was made by Purbaya Yudhi Sadewa, Deputy Minister of Finance, who confirmed the incentive scheme would proceed in 2026 despite ongoing regulatory discussions.

The subsidy applies to both new electric motorcycle purchases and the conversion of existing gasoline-powered motorcycles to electric power, maintaining the same eligibility criteria as prior years.

The scheme remains the same, but the budget is not under our control.

Agus Gumiwang Kartasasmita, Minister of Industry

The Ministry of Industry had previously prepared the incentive framework but awaited final approval from the Coordinating Ministry for Economic Affairs regarding the subsidy value and implementation timeline.

It’s all set, and as soon as the Coordinating Ministry for Economic Affairs determines the value and other aspects, we are ready.

Agus Gumiwang Kartasasmita, Minister of Industry

Last year’s program allocated Rp 1.75 trillion to subsidize 200,000 new electric motorcycles and 50,000 converted units at Rp 7 million per unit.

Industry representatives have urged the government to reinstate stronger incentives to stimulate sales toward a target of 100,000 electric motorcycles annually, citing regulatory uncertainty as a barrier to broader adoption.

The government previously provided subsidies for electric motorcycle purchases in 2023–2024, though implementation faced delays due to inter-ministerial coordination challenges.