Subsidized Electric Motorbikes Have Few Takers, President’s Staff Expresses Surprise

electric motors

The demand for subsidized electric motorcycles in Indonesia remains surprisingly low despite the government’s efforts to make them more accessible. Moeldoko, Chief of Presidential Staff (KSP), expressed his bewilderment, especially considering that the government has relaxed the purchase requirements for these eco-friendly vehicles.

“It’s rather peculiar; why the growth has been somewhat sluggish is also a bit baffling; we’ve eased the regulations, we’ve eliminated the restrictions,” Moeldoko commented during a discussion with reporters at the State Palace on Monday (6/11).

Moeldoko speculates that an incomplete ecosystem may be a significant factor contributing to the limited interest in electric motorcycles.

“It could be due to the fact that the ecosystem hasn’t been extensively developed yet; it’s like the classic chicken-and-egg situation,” Moeldoko remarked.

As of Thursday (9/11), reported that only 4,148 subsidized electric motorcycle units have been distributed, leaving a substantial government quota of 195,852 units untouched.

Despite the lukewarm response from the public, Moeldoko assured that the electric motorcycle subsidy program will continue into the following year with an ample quota of 600,000 units. However, there is still uncertainty about whether the remaining quota for this year will be carried over into the next or managed differently.

The subsidy program for electric motorcycles is rooted in the Minister of Industry Regulation (Permenperin) Number 6 of 2023, which governs the provision of subsidies for electric motorcycle purchases.

This regulation entails government financial support of Rp7 million for each unit, up to a maximum of 200,000 units for this year. Next year, this figure triples to 600,000 units.

In addition to expanding the quota, the government has also revised the eligibility criteria for prospective electric motorcycle buyers, making it more accessible. Initially, subsidy recipients were limited to those receiving people’s business credit, productive micro-business assistance, wage subsidy assistance, and recipients of electricity subsidies up to 900 volt-amperes.

However, a revision in Permenperin 6/2023, specifically Permenperin Number 21 of 2023, introduced new criteria. Now, any Indonesian citizen aged 17 or older with an electronic ID card and a single National ID Number (NIK) on their ID card can purchase a single subsidized electric motorcycle unit.

It’s worth noting that there are currently 38 models of subsidized electric motorcycles available for public purchase, although none of them are produced by prominent domestic brands such as Honda, Yamaha, Suzuki, or Kawasaki.