Indonesian Government Bolsters Push for 250,000 Electric Motorbikes in 2023

To encourage the switch to electric motorcycles the Indonesian Government said it will provide an incentive of Rp7 million (about US$450) for each of the 250,000 electric motorcycles purchased in the country this year.

Under the government aid program for the purchase of new motorcycles, electric motorcycles that receive the aid will need to be produced in Indonesia, a government spokesman said disclosed.

The 250,000 motorcycles qualifying for the incentive scheme will comprise 200,000 new electric motorcycles and 50,000 conventional fossil fuel motorcycles converted to electric motorcycles.

The electric motorcycles to be sold will also be required to have a domestic-component level of 40% or more.

In addition, electric motorcycle producers who meet the criteria will not be allowed to raise the selling price during the aid provision period. They will also have to commit to producing electric motorcycles at the required number.

Micro, small, and medium enterprises (MSMEs) will be prioritised as the recipient targets for the conversion of conventional fossil fuel motorcycles to electric motorcycles.

Specifically, the MSMEs will get People's Business Credit (KUR) and Productive Aid for Micro Enterprises (BPUM).

The government’s aid policy for the purchase of electric motorcycles is expected to start from March 20, 2023.

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