Top image: Photo: オーバードライブ83, CC BY-SA 4.0, via Wikimedia Commons
Sales of electric motorcycles in Indonesia have fallen sharply this year as buyers hold off while waiting for a promised government purchase incentive, industry groups have warned. The government says the scheme is still due to launch in 2026, but it continues to await the regulations needed to put it into effect.
Sales down sharply
According to the Indonesian Electric Motorcycle Industry Association (Aismoli), cited by The Jakarta Post, e-motorcycle sales dropped to only 18,900 units between January and August 2026, compared with 70,000 units for the whole of last year. Industry players told the paper that consumers were postponing purchases until the discount is available, leaving dealers with stagnant sales and, in some cases, facing the prospect of closure.
Moeldoko, chairman of the Indonesian Electric Vehicle Industry Association (Periklindo) and a former presidential chief of staff, urged the government to act:
“Why is this going back and forth, with us still waiting for when it will actually be implemented?” – Moeldoko, Periklindo, to The Jakarta Post
What is on the table
The planned scheme would give buyers a Rp 3 million discount on each locally made electric motorcycle, funded from a total budget of Rp 3 trillion. It replaces an earlier Rp 5 million-per-unit proposal, Antara reported. Accounts of the scheme’s scale differ: The Jakarta Post described it as covering up to 100,000 units, while Antara said the Rp 3 trillion budget was intended to support purchases of as many as one million domestically produced e-motorcycles, even though national production capacity is expected to reach only about 100,000 units by the end of 2026.
Expectations had been raised in August, when The Jakarta Post reported, under the headline that the subsidy would return in September, that then Finance Minister Purbaya Yudhi Sadewa expected the scheme to restart that month. That month has now almost passed without the programme starting.
Government: decided, but paperwork pending
Deputy Industry Minister Faisol Riza told Antara on 24 September that the government had already decided on the incentive and remained committed to implementing it this year. He said the remaining question was how quickly it could be realised, and indicated that officials were waiting for the new deputy finance minister to take up the post.
Implementation depends on a Finance Ministry Regulation (PMK), and Antara reported that the programme may also require a Presidential Regulation to give it a firm legal basis. Only once those rules are issued can the technical guidelines, lists of eligible models and dealer procedures be finalised.
What it means for buyers
For anyone considering an electric scooter or motorcycle, the delay creates a clear dilemma. Waiting could save Rp 3 million on an eligible model, which is a significant share of the price of many entry-level e-scooters. But there is no confirmed start date, and the incentive is expected to apply only to locally made models that meet local-content (TKDN) requirements, so not every bike on sale will qualify. Buyers should check with dealers whether a model is expected to be eligible and whether any dealer promotions already offset the potential discount. Those who need a bike now may find that existing manufacturer offers make waiting less worthwhile.
IndoEVs will report on the regulation and the list of eligible models once they are published.
Sources: The Jakarta Post – EV two-wheeler sales slump as incentive hangs in limbo, industry warns; Antara – RI govt still targets electric motorcycle incentive this year; The Jakarta Post – EV motorcycle subsidy to return in September: Purbaya