Wrong Motor Electric Subsidy, Not a Public Solution

JAKARTA - The government's plan to distribute electric motorcycle subsidies of IDR 5 million per unit starting June 2026 has attracted widespread attention. This program, according to experts, is the wrong target because it is not considered to have touched the root of the mobility problem of the Indonesian people.

The government will inject special funds for new electric motorcycles of Rp5 million per unit. This figure is smaller than the subsidy period of 2023 and 2025, which is Rp7 million.

Minister of Finance Purbaya Yudhi Sadewa said that the quota for subsidizing the purchase of electric motorcycles in the initial phase was 100 thousand units and there was a possibility of adding quotas.

"Electric motorcycles are the same, the first 100 thousand we give. How much subsidy? Rp5 million. If it's over, we'll give it again, if it's over, we'll give it again," said Purbaya earlier this month.

Not only for electric motorcycles, subsidies are also given to electric cars. Both are scheduled to be disbursed in early June. Purbaya believes that this step can reduce fuel consumption for motor vehicles.

However, the plan to disburse an electric motorcycle subsidy of IDR 500 billion for 100 thousand units starting in June is said to be a test of efforts to transition energy in Indonesia.

With the fantastic cost targeting private ownership, the Akaedmisi of the Civil Engineering Department of Unika Soegijapranata Djoko Setijowarno questioned the urgency of the government preferring to subsidize private vehicles rather than revitalizing the region's public transportation network which is increasingly dying.

"The incentive transfer of IDR 500 billion for personal electric vehicles is considered to be less targeted, because it does not touch the root of the basic needs of public mobility in Indonesia," said Djoko to VOI.

Indonesia, along with other countries, is trying to reduce carbon emissions. However, in this situation, the direction of the country's public transportation policy is again at a crossroads.

Referring to the track record of Buy the Service (BTS) which was rolled out by the Directorate General of Land Transportation since 2020, the subsidy budget of Rp. 500 billion was actually able to fix the transportation system in 10 cities, ranging from small to large scale. Through this allocation, each city can build three to five public transportation corridors, each corridor is strengthened by eight to 10 bus fleets.

Djoko assessed that this step was much more strategic because it could become a safety net for the community's economy amid the threat of rising fuel oil (BBM) energy costs.

Fuel price increases often trigger inflation and reduce purchasing power. With cheap or free public transportation for students, students, teachers, workers, and low-income people serves as a targeted "direct subsidy".

"This Rp 500 billion fund is able to significantly reduce the burden of household expenses compared to incentives for the purchase of electric motorcycles," added Djoko.

In addition, investment in public transportation is also considered more efficient in terms of fiscal, because the benefits can be felt by the wider community while helping to reduce dependence on private vehicles and fuel subsidies in the long term.

Policies that are too oriented towards private vehicles have the potential to worsen transportation problems in Indonesia.

"Continuing to pamper private vehicles will only prolong the vicious circle of congestion, accidents of productive age, and budget inefficiency," he said.

Djoko also highlighted the aspect of transportation safety in Indonesia which is still a serious problem. Many traffic accidents in the area involve students and students who use motorbikes due to the lack of public transportation options.

With the availability of integrated public transportation, the number of accidents in the productive age can be drastically suppressed. As many as 75 percent more accidents on the highway are caused by motorcycles.

The strengthening of public transportation is also considered to level out regional development and connectivity. The Rp500 billion fund, according to Djoko, can be used for fleet modernization, empowerment of local operators, and digitization to implement non-cash payment systems.

The presence of mass transportation in various cities is believed to reduce congestion, reduce carbon emissions, and create a more humane urban space. "The real solution to the energy transition is not to move the congestion from oil-fueled motorcycles to electric motorcycles, but to move the passengers to decent public transportation," said Djoko.

The presence of mass transportation in various cities is believed to reduce congestion, reduce carbon emissions, and create a more humane urban space.

Djoko assessed that choosing between giving incentives to buy 100,000 personal electric motorcycles or improving public transportation systems in various cities is a test of the government's commitment to the aspirations of the masses. Continuing to pamper personal vehicles will only prolong the vicious circle of congestion, accidents of productive age, and budget inefficiency.

"The real solution to the energy transition is not to move the congestion from oil-fueled motorcycles to electric motorcycles, but to move the passengers to decent public transportation," he said.