Indonesia offers US$458 subsidy for electric motorcycles in bid to spur EV adoption

JAKARTA: In a bid to increase the mass adoption of electric vehicles (EVs) in the country, the Indonesian government has introduced a subsidy for the purchase of electric motorcycles.

The 7 million rupiah (USS$458) subsidy for the purchase of the electric motorcycles, however, is only available to selected groups of people.

These include those who are registered as beneficiaries of the people’s business credit programme, micro business productive assistance, those who are on wage subsidy assistance as well as those in households that are given electricity subsidies. 

In a statement on Tuesday (Mar 21), Industry Minister Agus Gumiwang Kartasasmita said the subsidy aims to speed up the growth of the electric vehicles ecosystem in Indonesia. 

“To accelerate the formation of the electric vehicle ecosystem, the government has issued a policy of providing assistance for the purchase of two-wheeled electric vehicles which comes into effect from Mar 20, 2023,” Mr Agus said.

He added that the implementation of the subsidies will be supported by an independent verification agency. 

According to the director general of Metal, Machinery, Transportation Equipment, and Electronics Industry of the Ministry of Industry Taufiek Bawazier, the electric motorcycles eligible for the subsidies will need to be registered. 

These vehicles must then meet the Domestic Component Level (TKDN) value requirement of at least 40 per cent. The TKDN refers to the quantity of domestic components in a good or service.

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