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Electric two-wheeler incentives back in August, govt says

EV bikes sales in the first half of 2025 have plummeted, falling by 30 to 40 percent compared with the same period last year.

Ruth Dea Juwita (The Jakarta Post)
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Thu, July 3, 2025 Published on Jul. 3, 2025 Published on 2025-07-03T11:13:48+07:00

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A consumer inspects an electric motorcycle showcased in the Tangkas Ciater electric motorcycle showroom in South Tangerang, Banten, on March 6, 2023. A consumer inspects an electric motorcycle showcased in the Tangkas Ciater electric motorcycle showroom in South Tangerang, Banten, on March 6, 2023. ( Antara/Muhammad Iqbal)

T

he government is set to reinstate incentives for electric motorbikes in August, a senior official has said, after months of delay and uncertainty in the first half of the year.

Deputy Industry Minister Faisol Riza said on Wednesday that the subsidy scheme would be decided at an upcoming coordination meeting at the Office of the Coordinating Economy Minister.

“The total incentive value will remain the same,” Faisol told reporters, as quoted by Kompas.com.

Under the previous scheme, which ended at the turn of the year, buyers were eligible for a Rp 7 million (US$431) subsidy to purchase new electric motorcycles, and a Rp 10 million subsidy to convert gasoline-powered bikes into electric ones.  

Faisol said Finance Minister Sri Mulyani Indrawati had approved a Rp 250 billion budget for the renewed program.

Assuming the Rp 7 million per-unit subsidy remains unchanged, the allocated funds could support the purchase of about 35,700 new electric motorbikes.

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However, detailed implementation rules, including eligibility and disbursement mechanisms, are still under discussion, Faisol noted.

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