Indonesia Aims for Electric Motorcycle Conversion, Subsidized up to Rp5 Million

Transportation & Logistics

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Adi Ahdiat 16/12/2022 11:20 WIB

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The government aims to convert 5 million gasoline-powered motorcycles to electric motorcycles by 2026.

Target: Conversion of Gasoline-Powered Motorcycles to Electric Motorcycles in Indonesia (2022-2026)

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Indonesia Aims for Electric Motorcycle Conversion, Subsidized up to Rp5 Million

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Target: Conversion of Gasoline-Powered Motorcycles to Electric Motorcycles in Indonesia (2022-2026)

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The government plans to provide electric vehicle subsidies starting next year. The subsidies will not only cover the purchase of new vehicles but also support the conversion of gasoline motorcycles to electric motorcycles.

According to the Minister of Industry, Agus Gumiwang Kartasasmita, the subsidy for electric motorcycle conversions will be approximately Rp5 million per unit.

The electric motorcycle conversion program was actually launched by the government in 2022.

"This year, the government targets the conversion of 1,000 motorcycle units. It is hoped that this number will continue to increase to 10,000 units in 2023, continuing to 100,000 units in 2024, 1 million units in 2025, and 5 million units in 2026," stated the Ministry of Energy and Mineral Resources (ESDM) in its *Daily Strategic Information Review of Energy and Minerals, December 13, 2022*.

However, implementation has been hampered by budget issues. Of the target of 1,000 electric motorcycle conversions this year, only 148 units had been realized by mid-December 2022.

"The cost of electric motorcycle conversion is still high, or around Rp15 million per unit, while the Ministry of ESDM does not have a budget to fund the conversion," the Ministry of ESDM explained.

"Therefore, the Ministry of ESDM is actively discussing electric vehicle subsidies. Later, the subsidy for motorcycle conversion will not only target the battery subsidy; there will be a calculation of all motorcycle components," it continued.

"It is hoped that the incentives or subsidies will be a boon for the public and greatly assist the sustainability of producers," it concluded.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."