Indonesia's Rp5 Million Electric Motorcycle Incentive Awaits Finance Ministry Regulation

Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, announced that the government's planned incentive of Rp5 million for electric motorcycle purchases is currently on hold, awaiting the official issuance of a Ministerial Regulation of Finance (PMK) from the Ministry of Finance. Kartasasmita confirmed that the Ministry of Industry, as the technical ministry responsible, is fully prepared to roll out the program.

However, the implementation hinges entirely on the timely release of the necessary financial regulation. "We are waiting for the PMK. Once the PMK is finished, then we will adjust," Kartasasmita stated, emphasizing that the Ministry of Finance holds the authority over this specific regulation. He assured that his ministry has completed its technical preparations and is ready to proceed as soon as the financial framework is established.

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We are waiting for the PMK. Once the PMK is finished, then we will adjust.

The proposed incentive program was first put forward in April 2026 by the Minister of Finance, Purbaya Yudhi Sadewa. The initial plan targets the distribution of subsidies to approximately 6 million electric motorcycle units. The subsidy amount is estimated at Rp5 million per unit, though this figure is still under review and could be adjusted during the finalization of the policy. Discussions regarding the brands eligible for the incentive are ongoing, involving the Ministry of Industry, Danantara Indonesia, and the Ministry of Finance.

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We are ready, the Ministry of Industry as the technical ministry is ready. We are just waiting for the PMK.