30-8-2023 (JAKARTA) Indonesia has expanded its assistance programme to enable more citizens to purchase electric motorcycles at a subsidised cost. While the government aims to encourage the adoption of electric vehicles (EVs), some road users and experts believe that additional measures are required to drive consumer adoption.
Minister of Industry Agus Gumiwang Kartasasmita announced on Tuesday (Aug 29) that eligible individuals will receive a discount of 7 million rupiah (US$460) for a one-time purchase of an electric motorcycle. To qualify, individuals must be Indonesian citizens aged at least 17 years old with an electronic ID card.
The programme’s expansion comes after the government initially introduced subsidies to selected groups in March. The objective is to expedite the development of an EV ecosystem in Indonesia and create a cleaner environment.
However, despite the subsidies, many Indonesians remain hesitant to embrace electric motorcycles due to factors such as high costs and unfamiliarity with the brands available in the market. Agung Purwadi, a resident of Bekasi, cited budget constraints and concerns about battery capacity and charging infrastructure as obstacles to adopting EVs.
Another resident, Suryadi, highlighted the unfamiliarity of the brands and the lack of access to spare parts as reasons for his reluctance to switch to electric motorcycles. The price difference between EVs and conventional fuel-based motorcycles was also a deterrent.
Although electric motorcycle brands in Indonesia include Viar, Selis, Gesits, Alva, and China’s Wuling, some consumers are concerned about the vehicles’ ability to carry passengers and navigate challenging terrains.
Experts suggest that in addition to subsidies, there needs to be a stronger push from automakers to adopt EVs, as they play a crucial role in shaping consumer demand. More comprehensive plans are required to promote electric motorcycles, such as incentives for longer travel distances, convenient battery charging, and safety performance.
The Indonesian government aims to have 48,000 to 50,000 electric motorcycles on the road by the end of the year and 200,000 by 2024. In order to achieve this, industry players could establish a secondary market for electric motorcycles and standardise motorcycle batteries to promote growth in the EV industry.
