TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Govt mulls VAT waiver to replace electric motorbike subsidy

As consumers wait to hear word on whether the previous subsidy scheme would continue, the government is thinking of introducting a VAT waiver for new purchases of electric motorbikes.

Divya Karyza (The Jakarta Post)
Premium
Jakarta
Thu, January 16, 2025

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Govt mulls VAT waiver to replace electric motorbike subsidy Drivers pose with electric motorcycles during the launch of a joint shuttle service provided by PT GoTo Gojek Tokopedia and PT TBS Energi Utama (Electrum) at The Nusa Dua by ITDC on Oct. 19, 2022, ahead of the Group of Twenty (G20) Bali Summit.

T

he government is planning to rescind the subsidy for purchases of new electric motorbikes, but is mulling over replacing it with a tax incentive in its bid to boost the adoption of battery-powered two-wheeled vehicles, according to the Industry Ministry.

Under the previous scheme that ended on Dec. 31 last year, consumers were eligible for a Rp 7 million (US$429) subsidy to purchase new electric motorbikes as well as a Rp 5 million subsidy to convert fossil fuel motorbikes to electric.

The government is now considering a new scheme that waives value-added tax (VAT) for purchases of new electric two-wheelers, similar to a policy introduced for four-wheelers.

“Even if there are incentives, they will not be the same as the one offered last year or in 2023. Perhaps the scheme will be different, not [in the form of] subsidies anymore,” he said in Jakarta on Tuesday, as quoted by detikFinance.

“Maybe we will provide incentives through tax waivers. We are in the process of submitting the proposal.”

Read also: Govt misses EV two-wheeler subsidy target by huge margin

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

By registering, you agree with The Jakarta Post's

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

The government earmarked a total subsidy of Rp 350 billion for 50,000 new electric motorbike purchases in 2024, much lower than the Rp 1.4 trillion subsidy allocation in 2023.

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Govt mulls VAT waiver to replace electric motorbike subsidy

Rp 29,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 29,000

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.