Regulations
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.
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/-)
The 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.
