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.

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While the electric vehicle (EV) is not a new invention but has a history that stretches back much further than most people realize (in fact even predating the gasoline car), this type of car experienced a revival in the late 20th century, driven by the growing awareness of the environment and costly fuel prices.

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Over the past years we have mentioned on several occasions that the electric vehicle is the automotive industry’s future thanks to three key inter-related circumstances: (1) recent rapid technological developments that allow the electric vehicle battery to be more energy efficient, (2) the world’s eagerness to move away from fossil fuels toward renewable energy, and (3) rising political support for the development of an efficient and conducive regulatory ecosystem for the electric vehicle industry.

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Indonesian Investment Minister and Head of the Investment Coordinating Board (or BKPM) Bahlil Lahadalia confirmed that the groundbreaking ceremony for a new electric vehicle battery plant, which is developed by state-owned Indonesia Battery Corporation (IBC) and South Korea’s LG, will be held in late-July or August 2021 in Bekasi (West Java).

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