Indonesian electric motorcycle makers press for delayed subsidy rollout
Industry leaders say the promised Rp3 million per-unit subsidy for electric motorcycles has not been delivered, threatening sales in the final months of 2026.
At a meeting with the House’s Commission VII, Budi Setiyadi, head of the Indonesian Electric Motorcycle Industry Association, questioned the government’s commitment after the Rp3 million per-unit subsidy was announced earlier this year by Finance Minister Purbaya Yudhi Sadewa. Since Purbaya’s dismissal, the incentive has not materialised, leaving manufacturers uncertain. The industry saw rapid growth after subsidies began in 2023, reaching 77,000 units in 2024, but sales have slumped to 18,900 units through August 2026.
Budi warned that the delayed rollout could make it difficult to absorb the remaining inventory before year-end. He noted that even without subsidies, 2025 sales held at about 70,000 units, highlighting the policy’s impact on market dynamics.
Why it matters
The stalled subsidy threatens the growth of Indonesia's electric motorcycle market and could slow the country's shift to greener transport.
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