We are considering one national identity card (KTP), (will get incentives for) one electric motorbike
Jakarta (ANTARA) - The Indonesian government is planning to expand incentives for electric motorbike purchases for the public to accelerate the adoption of electric vehicles (EVs), Investment Minister Bahlil Lahadalia said here on Monday.

To expedite the growth of the EV ecosystem, the government has issued an incentive policy under which it is offering a purchase discount of Rp7 million (around $469) per unit for 200 thousand new electric motorbikes.

The incentive was rolled out on March 20, 2023.

The Rp7 million subsidy, however, is only for select groups of people.

Those who are entitled to get electric motorbike subsidies are micro, small, and medium enterprises (MSMEs), especially recipients of micro loans (KUR), recipients of wage subsidy assistance under Rp3.5 million, and 450–900 volt-amperes (VA) electricity customers.

During a limited meeting with President Joko Widodo at the Presidential Palace in Jakarta on Monday, the government decided that the terms and procedures for providing incentives on the purchase of electric motorcycles will be cut, Lahadalia informed.

"We are considering one national identity card (KTP), (will get incentives for) one electric motorbike," he stated.

The plan to expand electric motorbike purchase incentives is needed because electric motorbike adoption in the country has not met the set target. The number of electric motorcycle purchases in Indonesia is still low.

While the target for the number of incentive recipients was set at 200 thousand this year, its realization had reached just 1 percent as of July 2023.

So far, the remaining subsidy quotas for electric motorbikes have been recorded at 198,718 units, according to the Information System for Assistance in Purchasing Two-Wheeled Electric Vehicles, SISAPIRa.

The government has allocated Rp7 trillion (US$464 million) to subsidize the purchase and conversion of electric motorbikes in 2023–2024.

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Translator: Shofi Ayudiana
Editor: Sri Haryati
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