10 October 2025 (closed)
Jakarta Composite Index (8,257.86) +6.92 +0.08%
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Stakeholders Waiting for Electric Motorcycle Incentives in Indonesia
After the Indonesian government had stopped its IDR 7 million (approx. USD $425) discount program for electric motorcycles at the start of 2025, stakeholders in this industry are now waiting for new incentives.
Ahmad Muhibbuddin, General Manager of Corporate Communication at Astra Honda Motor (AHM), said that AHM is currently awaiting new incentives for electric motorcycles from the government. Muhibbuddin emphasized that incentives are a significant matter for both consumers and producers of electric motorcycles. The availability of incentives allows for more affordable electric motorcycles for the consumer, while manufacturers benefit from the increase in sales. Electric motorcycles are typically more expensive due to the costly electric battery.
This shows as sales of electric motorcycles have plummeted so far in 2025 (after the discount program was stopped). Reportedly, sales fell by around 75 percent in the first half of 2025 from the same period one year earlier. Muhibbuddin predicts that total electric motorcycle sales in the domestic market will only reach around 40,000 units in 2025.
Meanwhile, in full-2024 electric motorcycle sales did great, touching 63,146 units, much stronger than the (approximate) 48,000 units that were sold in 2023. The highest sales composition is achieved by the Honda CUV e:, contributing up to 70 percent of AHM's total electric motorcycle sales.
The incentive that was ceased at the start of 2025 involved a motorcycle subsidy scheme that provided a direct discount of IDR 7 million for the purchase of one electric motorcycle per Indonesian citizen.
The government's plan was to continue incentives, but with a different mechanism, likely shifting to a Government-Borne Value Added Tax (PPN DTP) discount, which would be either 6 percent or 12 percent of the selling price, depending on the motorcycle's Domestic Component Level (TKDN) and battery type (Sealed Lead Acid or Lithium).
Compared to conventional motorcycles, sales of electric motorcycles remain very low. For comparison, data from the Indonesian Motorcycle Industry Association (or AISI) show that in the January-August 2025 period a total of 4.27 million units were sold. This means that the market share of electric motorcycles in Indonesia is less than 1 percent.
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