Incentives Not Clear, Honda Focuses On Maintaining Consumer Electricity

JAKARTA - PT Astra Honda Motor (AHM) is still in the phase of waiting for clarity on incentives for electric motors from the government. After the subsidy quota expires at the end of 2024, there is almost a year no certainty regarding the continuation of the assistance program.

PT AHM Marketing Director Octavianus Dwi, emphasized that his party is still waiting for an official decision from the government regarding incentives that previously encouraged the adoption of electrification vehicles. However, he stressed that incentives are not the only important factor that can boost the acceptance of electric motorbikes in the market.

"We are waiting. We will try to increase the acceptance (electric motorists) in the market. Eliminating, reducing concerns in consumers," said Octavianus in Cikarang, recently.

Octavianus assessed that the increase in the adoption of electric motorcycles does not only rely on product quality, but also on the aspect of the full-sale service and the resale value. He emphasized that consumer confidence is the main element so that electric motors can be accepted more widely.

"That's why it's not just a product, but what aftersales are like, the resale value is too. We will increase it both," he said.

Although in India the production of Honda's electric motor was stopped due to piled up stocks, AHM ensured that different conditions occurred in Indonesia. The production process of electric motors at the AHM facility is said to continue to run to maintain sustainability and existence in the market.

"Furthermore, we (Indonesia) still maintain the continuity of existence in the market," said Octavianus.

On the other hand, Octavianus admits that the demand for electric motors in Indonesia is still very small, not even one percent of the total national market. Even so, AHM sees this phase as part of the journey towards an energy transition.

"Although it's not big, it's part of the journey to start the transition," concluded the man called Octa.

Previously, the government would provide another electric motorcycle incentive in September 2025, but in fact it was not realized. As a result, many consumers delay the purchase of electric motorcycles, some manufacturers finally provide discounts to maintain sales.

According to data from the Indonesian Electric Motorcycle Industry Association (Aismoli), in the first quarter of 2025, sales of electric motorcycles fell by 30-40 percent. This means that sales of electric motorcycles are very dependent on assistance from the government because currently the purchase price of electric motorcycles is still considered expensive.

Currently AHM already has a wider product line than before. Like Icon e:, which costs the cheapest at Rp28 million, then there is CUV e: which is Honda's most expensive electric motor at Rp54.4 million.