The Indonesian government is paving the way for automotive workshops or entrepreneurs in the automotive sector to undertake electric motorbike conversions. Dadan Kusdiana, the Secretary-General of the Ministry of Energy and Mineral Resources (ESDM), mentioned that they are in the process of amending the regulations.
“We are currently revising the regulations; the Ministerial Regulation has been issued. It is currently in the legalization process,” stated Dadan on December 19, 2023.
The revised Ministerial Regulation referred to is Ministerial Regulation No. 3 of 2023 concerning the General Guidelines for Government Assistance in the Motorcycle Conversion Program from Fuel-Powered Motorcycles to Battery-Based Electric Motorcycles.
In addition to opening up the conversion path for businesses, Dadan mentioned that the rule changes would also increase the incentive amount provided by the government to those undergoing conversion. The incentive amount was initially set at IDR 7 million, but through the latest revision, Dadan stated that the incentive amount would increase to IDR 10 million.
“There are already businesses targeted for vehicle conversion,” he said.
Earlier, the Minister of Energy and Mineral Resources, Arifin Tasrif, mentioned that the increase in the incentive amount to IDR 10 million had been in effect since November.
“It’s already in effect starting now,” said Minister Arifin Tasrif.
Arifin mentioned that the increased subsidy is applicable only to converted motorcycles, while the subsidy for the purchase of new electric motorcycles remains at IDR 7 million per unit.
According to data from the Ministry of Energy and Mineral Resources, the subsidy for electric motorbike conversions has reached 5,628 participants since its launch in March 2023. However, 2,069 participants withdrew due to the conversion cost burden, which still amounted to IDR 8 million per unit despite receiving subsidies.
Arifin stated that the electric motorbike conversion program has produced various benefits, including creating more extensive employment opportunities. Additionally, the cost of battery swaps for electric motorbike conversions is much lower.
Moreover, he mentioned that the electric motorbike conversion program would also enhance national energy resilience and contribute to foreign exchange reserves. This is because the current number of fuel-powered motorcycles on the road is approximately 120 million units.
