"We hope that the subsidies will continue, regardless of the scheme, whether in the form of subsidies or compensation," Aismoli chair Budi Setiadi said on Thursday.
Since 2023, the government has provided incentives for the purchase of electric motorcycles in the country, regulated by Industry Ministerial Regulation Number 21 of 2023.
Under the policy, the government provides a subsidy of Rp7 million (around US$442.96) for each electric motorcycle purchase.
Setiadi said that his association has met with government representatives several times to discuss the continuation of the electric motorcycle incentive program. However, there has been no certainty regarding whether the policy will continue, including the incentive amount and the scheme.
He pointed out that the electric motorcycle incentive program is mandated by Presidential Regulation No. 55 of 2019.
The regulation was issued to accelerate the battery-based electric vehicle program, under which the electric motor vehicle industry receives both fiscal and non-fiscal incentives.
In 2023–2024, the government provided the Rp7 million incentive and implemented the odd-even traffic rule as a non-fiscal incentive.
Setiadi stated that there is a need to shift from internal combustion engine (ICE) vehicles to electric vehicles to address many issues, including climate change.
"Indonesia encourages the use of electric vehicles in response to climate change," he added.
Recently, Deputy Minister of Industry Faisol Riza hinted that the electric motorcycle incentive program will continue in 2025. The program is considered necessary to support the development of the electric vehicle ecosystem in Indonesia.
The incentive is expected to increase investment, productivity, industrial competitiveness, and expand employment in Indonesia.
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Translator: Natisha A, Kenzu
Editor: Anton Santoso
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