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View all search resultsEV two-wheeler sales slump as incentive hangs in limbo, industry warns
Electric motorcycles sales have fallen sharply from 70,000 units last year to only 18,900 until August this year, according to the Indonesian Electric Motorcycle Industry Association (Aismoli).
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Several units of Indonesian electric motorcycle brand Selis are pictured on Oct. 27, 2019, in Jakarta. (Shutterstock/Wulandari)
T
he domestic electric vehicle industry has raised concerns that the government’s flip-flopping over incentives for electric two-wheeler purchases is choking sales, as consumers hold off on buying and dealers face the risk of shutting down.
Business players had been waiting for the Rp 3 trillion (US$167 million) incentive to come into effect, which would give buyers Rp 3 million off each locally made electric motorcycle, for up to 100,000 units.
The program was expected to be implemented earlier this year, with the government changing the timeline several times, but it has yet to provide certainty over when the incentive would be disbursed to date.
Read also: Industry seeks clarity ahead of Indonesia’s national EV bike launch
“The government should not hesitate to provide the incentive. Why is this going back and forth, with us still waiting for when it will actually be implemented?” Moeldoko, chairman of the Indonesian Electric Vehicle Industry Association (Periklindo) told a House of Representatives hearing with Commission VII overseeing energy on Monday.
“As a result, all our dealers and manufacturers are stuck with stagnant sales now. In the end, many dealers could go out of business.”
Moeldoko, presidential chief of staff under former president Joko “Jokowi” Widodo, argued that the government should view incentives not simply as a cost to the state but as a tool to accelerate the shift away from gasoline-powered vehicles.
