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View all search resultsLower EV motorcycle subsidy may stall adoption, industry warns
President Prabowo Subianto unveiled a subsidy program for 1 million locally made electric motorcycles in his Aug. 14 state budget address, pitching the scheme as a triple win for consumers, energy security and jobs.
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President Prabowo Subianto launches a national electric motorcycle and its supporting ecosystem at an electric motorcycle production facility in Cikarang, Bekasi regency, West Java, on Aug. 13, 2026. (Government Communications Agency of the Republic of Indonesia/-)
T
he Indonesian Electric Motorcycle Industry Association (Aismoli) has warned that the government’s decision to slash the electric motorcycle purchase incentive from Rp 7 million (US$395) to Rp 3 million per unit will likely dampen consumer demand.
Aismoli public relations and event executive Ririn Rinawati Sinaga said the reduced incentive would inevitably influence purchasing power and public interest in switching to electric two-wheelers.
“It will certainly be different compared with when the incentive was, say, Rp 5 million or the previous Rp 7 million, because it comes down to affordability. There will definitely be an impact,” Ririn said on the sidelines of the BIG Industrial Insight discussion in Jakarta on Wednesday, as quoted by Kompas.com.
She noted that Aismoli had previously coordinated with academic institutions, including Sebelas Maret University (UNS), to study how varying incentive amounts affected the electric motorcycle market, which the association may revisit to quantify the impact of the lower subsidy.
Despite concerns about the reduced amount, Ririn stressed that the industry’s primary demands remain regulatory certainty and swift implementation.
“We will simply follow the government’s lead. For us, it is about certainty. There is a Rp 3 trillion budget, but when will it happen?” she said.
Read also: EV motorcycle subsidy to return in September: Purbaya
