Home EXPAT LIFE ENTERTAINMENT Sales of Electric Motorcycle Without Subsidies Skyrocket, the Electric Vehicle Era Here?

Sales of Electric Motorcycle Without Subsidies Skyrocket, the Electric Vehicle Era Here?

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The interest among the Indonesian population regarding electric vehicles is on a notable upswing. This observation comes from the Ministry of Industry (Kemenperin), which has pointed out that the purchase of electric motorcycle without government assistance is surpassing that of subsidized electric motorcycles.

Minister of Industry Agus Gumiwang made this noteworthy statement during a session with Commission VII at the Indonesian Parliament (DPR RI) on the 13th of September, 2023.

“The purchase of electric motorcycles outside the purview of government assistance programs has experienced a remarkable surge, exceeding the 100 percent mark. However, the acquisition of electric motorcycles through government-subsidized programs has shown a comparatively slower pace,” emphasized Agus during this insightful meeting with Commission VII DPR RI on the aforementioned date.

Agus elucidated that, according to the comprehensive evaluation conducted by the Ministry of Industry, the deceleration in the uptake of government assistance for electric motorcycles can be attributed to certain criteria that have not been aligning effectively with the originally intended target market.

In response to this issue, the government has undertaken a significant modification in the requirements for purchasing subsidized electric motorcycles. These adjustments have been incorporated into the Minister of Industry Regulation No. 21/2023, which provides comprehensive Guidelines for Government Assistance for the Purchase of Battery-Based Electric Motorcycles for Two-Wheelers.

Minister Agus emphasized that broadening the scope of potential recipients of subsidized electric motorcycles is expected to have a pronounced impact in kindling the interest of the general populace.

“So, I want to reiterate that I am not harboring any apprehensions whatsoever regarding the public’s enthusiasm for acquiring electric motorcycles,” he confidently stated.

Under the auspices of this freshly minted regulation, the government has made provisions to offer assistance for one-time purchases of Battery-Based Electric Motor Vehicles (KBL) for Two-Wheelers, specifically targeting individuals who share the same National Identity Number (NIK).

Consequently, this government assistance program is accessible to Indonesian citizens who have attained a minimum age of 17 years and possess electronic identity cards (KTP elektronik).

In the context of this initiative, for each electric motorcycle purchase made using a single NIK KTP, the government has committed to provide an enticing discount amounting to IDR 7 million.

Furthermore, Agus expounded that the budget allocation dedicated to government assistance initiatives related to electric motorcycle purchases stands at a substantial IDR 350 billion. Remarkably, it is confidently anticipated that this budget will be absorbed at a rate exceeding 95 percent.

“As for the IDR 350 billion budget earmarked for the coming year, it is with full conviction that we assert it can be effectively harnessed. We anticipate the utilization rate to surpass the 95 percent threshold for facilitating the acquisition of 50,000 electric motorcycles,” he concluded, conveying his optimism regarding the efficient implementation of this impactful program.

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