E-motorbike subsidy rules are ready, minister says, but Finance must sign off

Top image: Photo: Daddynnoob, CC0 (public domain dedication), via Wikimedia Commons

Indonesia’s long-promised purchase incentive for electric motorcycles is ready to go as far as the Ministry of Industry is concerned, according to Industry Minister Agus Gumiwang Kartasasmita. The final call, he says, now belongs to the Ministry of Finance, which changed hands earlier this month.

The update is the latest turn in a saga we covered on 24 September, when industry groups warned that e-motorcycle sales had slumped as buyers waited for the discount to appear.

“The technical side is ready”

Speaking at the Fairmont hotel in Jakarta, Agus said his ministry had done its part, CNN Indonesia reported on 25 September:

“We, the technical ministry, are ready. If the Finance Minister decides to grant the incentive…” – Agus Gumiwang Kartasasmita, Industry Minister, to CNN Indonesia (translated from Indonesian)

He made a similar point earlier in the week, telling reporters that the technical guidelines (petunjuk teknis) had been prepared, IDN Times reported on 23 September. What is still missing is a Finance Minister regulation (PMK) to give the scheme its legal footing, Medcom.id noted, adding that Deputy Industry Minister Faisol Riza had described that regulation as almost finished.

A new minister in charge

The person who publicly promised the subsidy is no longer in the job. President Prabowo Subianto replaced Finance Minister Purbaya Yudhi Sadewa with Suahasil Nazara on 14 September, according to Medcom.id, which listed the e-motorbike incentive among the unfinished business Purbaya left behind. Purbaya had said the subsidy should already have been running in September.

The scheme on the table is unchanged: a Rp 3 million discount per domestically produced electric motorcycle, from a total budget of Rp 3 trillion aimed at up to one million units. That is well below earlier plans of Rp 5 million per unit, and less than half the Rp 7 million incentive offered in 2023, IDN Times pointed out.

Sales still under pressure

The uncertainty continues to weigh on the market. Budi Setiyadi, chairman of the electric motorcycle industry association Aismoli, told CNN Indonesia that sales reached only about 18,900 units in January–August 2026, compared with roughly 77,000 in 2024 and 70,000 in 2025.

Even if the scheme starts soon, it is unlikely to use its full budget this year. CNN Indonesia reported that realistic take-up in 2026 is around 100,000 units, limited by domestic production capacity. By our own calculation, 100,000 units at Rp 3 million each would draw about Rp 300 billion, or roughly a tenth of the Rp 3 trillion allocation.

Some analysts also question whether the amount is enough. Deon Arinaldo, a director at the Institute for Essential Services Reform (IESR), warned that “incentives that are too small risk not being enough to close the price gap” with petrol motorbikes (translated from Indonesian), IDN Times reported.

What it means for buyers

• No start date yet. Until the Finance Ministry issues its regulation, there is no official discount at dealers, whatever sales staff may suggest.
• Only local models qualify. The scheme targets domestically produced e-motorbikes, so check that a model meets the local-content rules before counting on the discount. Our report on Alva and rising TKDN requirements explains why this matters.
• Weigh waiting against dealer offers. With sales weak, some brands are already discounting. Rp 3 million is a useful saving on a budget scooter, but a current dealer promotion may be worth as much.

For model and price comparisons, see our electric motorbike buyer’s guide and the motorbike brands in the IndoEVs EV directory, such as Volta and Alva.

Related: EV taxes and incentives in Indonesia in 2026: what buyers now pay

Update, 5 October 2026: Agus Gumiwang has since been replaced as Industry Minister by Muhammad Sarmuji, and the incentive is still waiting for a Finance Ministry regulation. Read our follow-up.

Sources: CNN Indonesia (25 Sept 2026); IDN Times (23 Sept 2026); Medcom.id (14 Sept 2026).