• Newsletter
  • Contact
  • Press Releases
Tuesday, May 13, 2025
Stay Ahead with Heaptalk: Your Go-To Source for Business News
  • Login
  • Register
  • Whats on
  • News
  • Events
  • Technology
  • Industry
  • GovAct
  • Expert Talk
  • Insight
  • Sustainability
No Result
View All Result
Stay Ahead with Heaptalk: Your Go-To Source for Business News
  • Whats on
  • News
  • Events
  • Technology
  • Industry
  • GovAct
  • Expert Talk
  • Insight
  • Sustainability
No Result
View All Result
Stay Ahead with Heaptalk: Your Go-To Source for Business News
No Result
View All Result
Home Industry

Indonesian govt allocates US$456 million for electric motorcycle subsidies in 2023-2024

Sinta by Sinta
October 9, 2023
in Industry, News
0
electric motorcycle subsidies

Illustration of electric motorcycle. Photo: Javygo/Unsplash

Share on FacebookShare on Twitter

Electric motorcycle subsidies in Indonesia will take effect on March 20 while electric cars will be announced further on April 1, valid for 2023-2024.

Heaptalk, Jakarta — The Indonesian government has budgeted a total of Rp7 trillion or worth US$456 million (US$1 equals Rp15,342) in financial assistance to subsidize the purchase of electric motorcycles as a form of support to accelerate the development of the battery-based electric motorized vehicle industry ecosystem.

Minister of Finance Sri Mulyani conveyed a government subsidy of Rp7 million (US$456) per unit allocates for 1 million units of new electric motorcycles and convertible electric motorcycles. To be implemented in 2023-2024, the provision of government assistance will be managed by two agencies, namely the Ministry of Industry for new electric motorcycles and the Ministry of Energy and Mineral Resources for convertible electric motorcycles.

In more detail, the government will distribute purchase subsidies for 200,000 new electric motorcycles and 50,000 convertible electric motorcycles in 2023 with a total budget of Rp1.75 trillion (around US$114 million). In 2024, the government will deliver subsidies to 600,000 new electric motorcycles and 150,000 convertible electric motorcycles with a total budget of Rp5.25 trillion (around US$342 million).

“What has been (done) so far is the fiscal policy and fiscal incentives given to build the electric car and motorcycle industry. Now, we are providing additional government assistance for new and convertible electric motorcycles,” said Sri Mulyani during a press conference in Jakarta (03/20).

Further, Sri Mulyani detailed that those entitled to receive the new electric motorcycle subsidies include MSMEs receiving people’s business credit assistance (KUR), recipients of micro business productive assistance (BPUM), recipients of wage subsidy assistance (BSU), and recipients of 450-900 VA electricity subsidies. Meanwhile, for convertible electric motorcycle subsidies, there are no specific requirements of the recipients.

Regarding the requirements for motorcycle products, Sri Mulyani said, “The requirement that must be met by motorcycles is that they meet Indonesia’s domestic component level (TKDN) of at least 40%. Electric motor products that receive assistance must be given conditions not to increase their selling price during the period of government assistance.”

Provision of tax incentives, certification for producer and service center providers

In addition to the electric motorcycle subsidies, several tax incentives will also be provided by the government, one of which is a value-added tax incentive in 2023, which aims to increase investment attractiveness in the battery-based electric motorized vehicle ecosystem.

Electric cars and buses with a domestic component level above 40% will obtain a 10% value-added tax incentive, making the tax paid only 1%. Electric buses with a 20-40% domestic component level will receive a 5% value-added tax incentive, leaving 6% of the amount to be paid. These incentives are valid as of March 20, 2023, for electric motorcycles and April 1, 2023, for electric cars and buses.

Meanwhile, Coordinating Minister for Maritime Affairs Luhut B. Pandjaitan said that with this mass adoption along with various other policies, the Indonesian transportation industry is expected to transform into a greener industry. Later on, the developed industry will strengthen Indonesia’s position in the value chain for mineral resources, batteries, and electric vehicles (EVs).

“Anyone who wants to produce (electric) motorcycles will later be certified by the Ministry of Industry. Later the Ministry of Energy and Mineral Resources can manage the service center for electric motorcycles and which ones have been certified,” Luhut explained during a press conference in Jakarta (03/20).

This assistance program to accelerate the adoption of battery-based electric motorized vehicles is part of the government’s efforts to boost Indonesia’s energy independence. Apart from the subsidy, the Indonesian government has built a lithium processing plant in Morowali, Central Sulawesi, with a capacity of 60,000 tons per year, one of the largest in the world.

“Currently, Indonesia is an importer of fossil fuels. Hence, scaling up the adoption of battery-based electric motorized vehicles can reduce dependence on fossil fuels and strengthen Indonesia’s trade balance. If we succeed in transforming and electrifying our transportation sector, then Indonesia can reduce the negative impact of greenhouse gas emissions which will help fulfill the Net Zero Emission commitment and provide a better quality environment for our future generations,” concluded Luhut.

Tags: electric car subsidyelectric motorcycle subsidyElectric Vehicleev in indonesialithium battery

Related Posts

DCCI 225 Kuala Lumpur. (Credit: DCCI 2025 KL official website)

DCCI 2025 to present 500+ executives this May

May 9, 2025
Jenius s-Card launch at Pullman Jakarta Thamrin, Central Jakarta (05/08). Credit: Sinta

Solving users’ needs, Jenius launches supplementary credit card s-Card

May 9, 2025
ISSEI 2025 technical meeting (05/06). Credit: ISSEI

ISSEI 2025 set to take place on 21 May

May 8, 2025
World app verifies users by scanning iris through Orb. Credit: Sinta

Alleged privacy violation, TFH defends World app giving users full control over their data

May 8, 2025
Illustration of GenAI application in manufacturing industry, especially supply chain. Credit: This is Engineering/Unsplash

Manufacturers embrace GenAI for supply chain, but face workforce gaps

May 8, 2025
Jakarta MRT will reach South Tangerang. Credit: MRT Jakarta

South Tangerang Mayor announces Jakarta MRT to reach South Tangerang

May 7, 2025
  • 32321

    New tech layoff chapter, Microsoft lays off thousands of its cloud unit ‘Azure’

    1 shares
    Share 0 Tweet 0
  • Nokia rolls out 6600 5G Ultra

    0 shares
    Share 0 Tweet 0
  • Performing a second layoff round, Morgan Stanley to reduce 3,000 workforces in Q2 2023

    1 shares
    Share 0 Tweet 0
  • TikTok Shop to reach a US$15 billion in its GMV transactions

    1 shares
    Share 0 Tweet 0
  • International Women’s Day – Opportunity for Businesses to Support Women in the Workplace

    0 shares
    Share 0 Tweet 0
the 10th world battery & energy industry expo 2025DCCI Malaysi 2025World AI Technology Expo UAE 2025
Heaptalk business news logo

We Build an Ecosystem by Sharing Business News, Headlines and Expert Talks in Professional Perspective and Positive Point of View. Latest business news media headlines platform today.

Recent Posts

  • DCCI 2025 to present 500+ executives this May
  • Indonesia Set to host World of Coffee 2025, first in Southeast Asia
  • Solving users’ needs, Jenius launches supplementary credit card s-Card
  • Prabowo signs revised regulation boosting domestic content requirements
  • Govt rolls out subsidized housing program for 20,000 Indonesian migrant workers

Follow Us

Facebook
Twitter
LinkedIn Youtube Instagram RSS

Newsletter

  • About Us
  • Editorial
  • Newsletter
  • Contact
  • Privacy Policy
  • Cyber Media Guidelines
  • Disclaimer
  • SOP Perlindungan Wartawan

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • News
  • Technology
  • Industry
  • GovAct
  • Events
  • Whats on
  • Expert Talk
  • Insight
  • Sustainability
  • Newsletter
  • Press Releases
  • Login
  • Sign Up

© 2024 Heaptalk.com