Giving Incentives For Sales Of Electric Motorcycles Up To 263 Percent

Director of Maritime Industry, Transportation Equipment, and Defense Equipment (IMATAP) of the Ministry of Industry Mahardi Tunggul Wicaksono. (Photo: ANTARA)

The Ministry of Industry (Kemenperin) stated that the provision of incentives, such as purchasing assistance of Rp. 7 million for electric motors, increased sales of these vehicles by 263 percent.

This figure is the number of electric motorcycles in 2023, which originally jumped to 62,409 units.

"The number of registration for two-wheeled Electric Motor Vehicles (KBLBB) in 2023 has increased by 263 percent compared to 2022. This increase is driven by the implementation of an incentive policy for the purchase of two-wheeled KBLBBB," said Director of Maritime Industry, Transportation Equipment, and Defense Equipment (IMATAP) Mahardi Tunggul Wicaksono as reported by ANTARA, Monday, May 19.

Furthermore, in 2024, he conveyed, the increase in electric motorcycle registration only reached 24 percent to 77.078 units, this showed a slowdown in growth.

Furthermore, although the growth trend of two-wheeled KBLBB continues to increase from year to year, this figure is still far behind compared to sales of internal combustion engine (ICE) motorcycles which reached 6.33 million units, with a comparison that still only reached 1.2 percent of the total market.

As a sector that is still in the development stage, two-wheeled KBLBB needs further support so that the market can develop faster and create a stronger electric vehicle ecosystem in the country.

Therefore, Tunggul hopes that the incentive policy for the purchase of electric motorcycles will continue, and be realized this year.

"We are still communicating with the relevant ministries or institutions, because the final determinant is at the Ministry of Finance," said Tunggul.

Last year, the Government through the Ministry of Industry (Kemenperin) established various conditions for submitting electric motor subsidies as regulated in the Regulation of the Minister of Industry (Permenperin) Number 21 of 2023.

This regulation is a revision of Permenperin No. 6 of 2023 which regulates government assistance guidelines for the purchase of two-wheeled battery-based electric vehicles.

A subsidy of IDR 7 million is given for one ID card, which means each individual can only apply for a subsidy once. This policy reflects government support in accelerating the development of electric motors in Indonesia as part of the clean energy transition.

In the 2024 subsidy program, the government allocated 200,000 units of new electric motors and 50,000 units of conversion motors with a total budget of IDR 1.75 trillion.

The quota is planned to continue to increase to reach 1 million units by 2024 and is likely to be further expanded by 2025.