- Introduction: How the Government has been boosting electric vehicle use in Indonesia
In recent years, Indonesia has been growing its interest in electric vehicles, including two-wheel motorcycles. Indonesia has set a target of having one million electric vehicles on its road by 2025. The Government had introduced several policies and incentives to encourage the production and adoption of these vehicles.
With the plan to increase interest in purchasing electronic motorcycles, the MOI recently issued Regulation 6.
- Can anyone be subsidized?
No, the subsidy can only be accessed by someone registered in the following:
- Kredit Usaha Rakyat (KUR);
- Micro Business Productive Assistance;
- Wage subsidy assistance; and/or
- Recipient of 900 Amperes electricity subsidies.
- Can any electronic motorcycle be subsidized?
No, the subsidy is only for motorcycles fulfilling the following:
- Registered in the MOI’s system; and
- Assembled from a minimum of 40% (forty percent) domestic components.
- Is there any quota for the subsidy?
Yes, there is. The Government aims to subsidize 200,000 units for 2023 and 600,000 for 2024. This will also take into account the availability of the Government’s budget.
- Is the subsidy in place already?
Yes, since 20 March 2023, when Regulation 6 was promulgated.
- How is the subsidy implemented?
The Government subsidizes IDR 7,000,000 out of the price of each unit sold. And this will only be applied for one-time purchases by each person.
Electric motorcycle companies then submit the purchase recap to an Independent Verification Agency, appointed by the MOI, before the subsidy can be disbursed.
