New industry minister inherits stalled e-motorbike incentive as sales sink

Top image: Muhammad Sarmuji. Photo: KPU (General Election Commission), Public domain, via Wikimedia Commons

Indonesia has a new Industry Minister, and one of the first files on his desk is an electric motorbike incentive that has been close to ready for months. Muhammad Sarmuji, until now secretary-general of the Golkar party, was sworn in by President Prabowo Subianto at the State Palace on 1 October, replacing Agus Gumiwang Kartasasmita, Antara reported. It was Prabowo’s seventh cabinet reshuffle since he took office in October 2024.

The change comes at an awkward moment for the EV industry. As we reported on 27 September, Agus had said the Industry Ministry’s technical work on the e-motorbike purchase incentive was finished and that the decision rested with the Ministry of Finance. A week later, the money has still not been released.

A promise of continuity

At his handover ceremony in Jakarta on 2 October, Sarmuji signalled that he would build on his predecessor’s programmes rather than tear them up.

“We must carry forward what has been achieved and further strengthen the foundations that have been laid.” – Muhammad Sarmuji, Industry Minister, quoted by Antara

He did not mention electric vehicles in those remarks. But the ministry he now runs sets the local-content (TKDN) thresholds that decide which EVs qualify for tax breaks, and it designed the motorbike incentive. Kumparan listed sustaining EV incentives, strengthening local component supply chains, emission standards and reviving weak car and motorbike demand among his immediate challenges. A member of the House commission that oversees industry, Gandung Pardiman, told Republika the new minister should look beyond finished vehicles and also strengthen the component industry, echoing complaints from parts makers last month.

Incentive still waiting for a Finance Ministry rule

The incentive itself has shrunk while it waited. The original plan was Rp5 million per motorbike; the figure now under discussion is Rp3 million, with a proposed budget of Rp3 trillion covering up to one million locally made units, according to detikFinance.

Industry Ministry spokesperson Febri Hendri Antoni Arief told OtoDream on 3 October that the scheme was still waiting for a Finance Minister regulation (PMK), and that the Finance Ministry would set the amount based on the state’s fiscal capacity. The ministry is not announcing details until the rule is signed, he said, to avoid raising false expectations.

On 4 October, Coordinating Minister for Economic Affairs Airlangga Hartarto said the incentive would still take effect this year, telling detikOto that the matter sat with the Industry and Finance ministries and that his office would monitor it. He added that this year’s budget allocation (DIPA) is held by the Energy and Mineral Resources Ministry, a further sign of how many hands the scheme passes through. He gave no start date.

Dealers say the market is frozen

Moeldoko, chairman of the electric vehicle industry association Periklindo, said the repeated delays were hurting sellers because buyers keep postponing purchases until they know whether a discount is coming.

“All our dealers and manufacturers are stuck now.” – Moeldoko, Periklindo, to detikOto (translated from Indonesian)

The sales figures support him. According to detikFinance, electric motorcycle sales from January to August 2026 totalled about 18,900 units, compared with around 77,000 for the whole of 2024 and roughly 70,000 in 2025. By our own calculation, that is an average of about 2,400 a month this year against about 5,800 a month last year. Budi Setiyadi, chair of the electric motorcycle association Aismoli, described the fall as very steep and said many people were waiting to see when the subsidy would arrive. We first reported on the slump in September.

What it means for buyers

• No incentive is available today. Until a Finance Ministry regulation is published, dealers cannot apply a government discount, whatever the headlines say.
• Rp3 million, not Rp5 million, is the likely figure if the scheme goes ahead, and it is expected to cover locally produced models only.
• Waiting has a cost too. With less than three months of 2026 left and no start date, buyers who need a bike now may find that dealer promotions are worth as much as the uncertain subsidy. Our electric motorbike buyer’s guide and 2026 EV tax and incentive guide explain current prices and rules, and our EV directory lists the brands on sale.

Whether Sarmuji can push the regulation through faster than his predecessor will be the first test of his promise of continuity. IndoEVs will report when the rule is signed.

Update, 9 October 2026: Coordinating Economic Minister Airlangga Hartarto has since said the incentive will take effect this year. See Motorbike sales jump 15% in September as e-motorbikes wait on incentive.

Sources: Antara (1 Oct); Antara (2 Oct); Kumparan; Republika; OtoDream; detikOto; detikFinance