IESR says Rp3 million e-motorbike incentive is not yet effective
IESR calculates a Rp5 million incentive plus Rp3 million trade-in could lift adoption by 810,000 units by 2030.
The Institute for Essential Services Reform (IESR) said the Rp3 million per unit incentive for electric motorbike purchases is not strong enough to drive a shift from gasoline-powered motorcycles to electric vehicles. The program is backed by a Rp3 trillion budget and aims to produce 1 million domestically made electric motorbikes, but the government estimates sales using the incentive through the end of 2026 will reach only about 100,000 units. IESR Energy System Transformation Director Deon Arinaldo said effectiveness would be higher if the Rp5 million incentive were combined with a Rp3 million trade-in scheme and disincentives such as raising Pertalite prices closer to economic levels. In IESR's model, that combination could add 810,000 units in adoption by 2030 compared with a business-as-usual scenario.