Electric Motor Incentives Targeted To Be Issued This Year, Scheme Expected To Still Be The Same

Opening of IMOS 2025. (Photo: Afrizal/VOI)

JAKARTA The government is optimistic that the incentive scheme for electric motorcycles can be rolled out again this year in the same format as 2024.

Deputy Minister of Industry, Faisol Riza, expressed his hope that the regulation could be issued immediately.

"Hopefully the scheme remains the same and this year it can come out," he said when met at the Indonesia Motorcycle Show (IMOS) 2025 exhibition at ICE BSD City, Tangerang, as reported by ANTARA, Wednesday, September 24.

In line with Faisol, Minister of Industry Agus Gumiwang Kartasasmita ensured that his party had prepared the incentive scheme and was ready to implement it immediately after the Coordinating Ministry for the Economy set the amount of funds and its implementation schedule. Agus emphasized that the budget for this program will be determined by the Coordinating Ministry for the Economy, and can be used both this year and next year.

The government is currently finalizing a number of follow-up policies from the economic stimulus disbursed in June 'July 2025. For information, the Ministry of Finance has prepared a stimulus worth IDR 10.8 trillion in the third quarter of 2025 to maintain the momentum of national economic growth.

In 2024, the government allocated Rp1.75 trillion for the purchase subsidy of 200 thousand new electric motorcycles and 50 thousand conversion motors. Each electric motorbike has just received a discount of Rp7 million per unit.

The Ministry of Industry is currently still waiting for the results of the Limited Coordination Meeting (Rakortas) with the Coordinating Ministry for the Economy and related ministries before issuing the Minister of Industry Regulation (Permenperin) regarding the provision of electric motor incentives targeted for completion this year.

This policy is expected to encourage public interest again to switch to environmentally friendly vehicles. The reason is, the trend of sales of electric motorcycles this year has decreased quite sharply. If in 2024 sales jumped 447 percent or reached 63,146 units (up from 11,532 units in 2023), then in the first semester of 2025 only about 1,000 units were sold, far below the target.