Indonesia Sees Sales of Electric Motorcycles Accelerate

In an update earlier this week, Indonesia’s Industry Ministry said it has so far distributed subsidies for the purchase of 30,083 electric motorcycles, accounting for 60.1% of the target of 50 thousand e-motorcycles for 2024.

“The progress of the distribution of assistance for the purchase of electric motorcycles as of today has surpassed the total assistance distribution in 2023,” the ministry’s spokesman, Febri Hendri Antoni Arif, said on May 28.

The government is aiming to achieve the target of subsidising 50 thousand electric motorcycle purchases by August or early September 2024.

Febri Hendri Antoni Arif added that since the subsidy quota has shrunk, people are being urged to buy electric motorcycles as soon as possible to get the subsidy.

From the start, the ministry has proposed that the subsidies for electric motorcycle purchases be given to all Indonesian citizens from various economic backgrounds. The plan, Indonesian press agency Antara reports, is aimed at changing people’s perception and behaviour regarding the use of e-motorcycles

“If electric motorcycles’ sales are high and they are widely used by the public, then there will be a need for investment to provide charging stations, workshops, accessories, and other needs for electric motorcycles,” Febri Hendri Antoni Arif said. This, he added, could attract investment to build the supporting industries of the electric motorcycle ecosystem.

Under the subsidy program, people can get a discount of Rp7 million (around US$435.36) on the purchase of an electric motorcycle.

As of mid-May 2024, the total number of electric vehicles in Indonesia, comprising two-wheeled vehicles, three-wheeled vehicles, passenger vehicles, commercial vehicles, and buses, had reached 144,547 units.

Earlier, secretary general of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, said that the Indonesian government has set aside funding of US$455 million to provide subsidies for the purchase of electric motorcycles.

According to him, the subsidies will cover the sale of 800 thousand new electric motorcycles and the conversion of 200 thousand combustion motorcycles.