RI Govt still targets electric motorcycle incentive this year

Tangerang, Banten (ANTARA) - Indonesia still plans to introduce incentives for electric motorcycle purchases in 2026, with the program awaiting a Finance Ministry regulation even as the year enters its final quarter.

Deputy Industry Minister Faisol Riza said the government remains committed to implementing the incentives this year, pending issuance of the Finance Ministry Regulation, or PMK.

"We are waiting for the new Deputy Finance Minister. It has certainly already been decided by the government, the question now is just whether it can be realized as soon as possible," he told ANTARA here Thursday.

Implementation remains dependent on completing the necessary regulations. While the government continues to target 2026, it has not provided a firm start date for the incentives.

The government previously proposed an incentive of Rp3 million (US$182) per electric motorcycle, with a budget of about Rp3 trillion (US$182 million), replacing an earlier Rp5 million scheme.

The Rp3 trillion budget is intended to support purchases of as many as one million domestically produced electric motorcycles.

However, the government estimates national electric motorcycle production capacity will reach only about 100,000 units by the end of 2026.

In August 2026, the government said the incentives could be introduced as early as September.

Industry Minister Agus Gumiwang Kartasasmita said his ministry is technically ready and is awaiting the PMK needed to implement the program.

In early September, EBTKE Director General Eniya Listiani Dewi told ANTARA that the program still requires a specific regulatory framework, including a Presidential Regulation following the government's decision that dedicated legal certainty is necessary.

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Translator: Pamela, Kenzu
Editor: Rahmad Nasution
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