Complete Facts Of Electric Motorbike Conversion Subsidies With Required Costs

Illustration of electric motorcycles (Unsplash)

YOGYAKARTA – The government continues to increase the use of electric vehicles in Indonesia. One of the programs being intensified is to provide incentives for the purchase and conversion of fossil-fueled motorbikes to electricity. The facts about the subsidy for the conversion of electric motorbikes are also being looked at by the public.

Electric Motorbike Conversion Subsidies Facts

In general, the conversion of electric motorized vehicles is the replacement of motorcycle components that were originally fueled by fossil fuels into motorcycles with electric components. The policy of converting fuel-to-electric motorbikes is currently receiving attention from the Government. In fact, the government provides subsidies related to changes in this component.

There are several facts that must be known by the public regarding the conversion of electric motors, namely as follows.

1. Subsidies for Limited Vehicle Conversions

As is well known, the Government provides subsidies for electric motorbikes of up to IDR 7 million per unit with a subsidy value budgeted by the Government reaching IDR 1.75 trillion by the end of the year. Of this amount, only 50,000 units were allocated for community motorbike conversion activities. Meanwhile, the rest of the state budget will be allocated for subsidies for 200,000 new electric motorbikes purchased by the public.

“The number is 250,000 units. So, if you multiply it by IDR 7 million, it becomes IDR 1.75 trillion,” said the Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, in Jakarta, Monday, March 6.

2. Subsidy Target

It should also be noted that priority recipients of subsidies are micro, small and medium enterprises (MSMEs), recipients of People's Business Credit (KUR), recipients of the Micro Business Productive Banpres or BPUM, or electricity customers with 450 to 900 VA power. The criteria for receiving subsidies are determined in order to increase business productivity.

3. Converted Motor Terms

The Secretary General (Sekjen) of the Ministry of Energy and Mineral Resources (ESDM), Rida Mulyana explained the criteria for vehicles that can get fuel-to-electricity conversion subsidies, namely as follows.

• The condition of the motorbike must be prime and roadworthy.
• Machine capacity or cubic centimeter (CC) from 110 to 150 CC.
• Motorcycles must be equipped with administrative documents such as KTP, BPKB, STNK, to legal vehicle numbers. Dumb bikes or harleys won't get conversions.
• Changing or converting fuel-to-electric motors must be done at an official certified workshop from the Government.

4. Conversion Costs Estimated Tens of Millions

It should be known, the cost of converting fuel-to-electric motorcycles is estimated at tens of millions. These costs consist of component costs including batteries, BLDC, to control, installation service fees paid to the repair shop, physical test fees, vehicle registration adjustment fees, and other costs related to motorcycle reconditioning.

The required conversion costs are estimated at IDR 18 million, but it depends on the condition of the motorbike. With a subsidy of IDR 7 million from the Government, people still have to pay IDR 11 million.

The Ministry of Energy and Mineral Resources itself has an estimated cost of converting electric motors. It is estimated that the money that must be prepared reaches IDR 14.1 million for non-matic motorbikes, and IDR 15 million for automatic motorbikes.

An additional fee of IDR 424,000 must be prepared when testing the electric motorbike at the Roadworthiness Testing Center and motor vehicle certification (BPLJSKB) of the Ministry of Transportation (Kemenhub). Communities also have to pay the cost of changing STNK, TNKB, and BPKB which can reach IDR 500,000, plus the cost of replacing spare parts which can reach IDR 2 million.

Apart from facts related to electric motorbike conversion subsidies, visit VOI.ID to get other interesting information.