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# Indonesia prepares electric-motorcycle incentive, but regulation is still pending
- URL: https://www.southeastasiaconnect.com/indonesia-electric-motorcycle-incentive-awaits-regulation/
- Published: 2026-08-18T01:50:00.000Z
- Updated: 2026-09-22T02:43:25.000Z
- Description: The Industry Ministry says it is ready to administer a proposed Rp5 million incentive for local electric-vehicle manufacturing, while the amount, eligible brands and start date still depend on a Finance Ministry regulation.
- Author: Southeast Asia Connect Editors
- Tags: #sea-section-news, #sea-source-a11431630ccbe7591e323360

Indonesia is preparing a new incentive for electric motorcycles, but buyers and manufacturers do not yet have an operating programme. The Industry Ministry says implementation still depends on a Finance Ministry regulation.

Industry Minister Agus Gumiwang Kartasasmita said the current proposal is about Rp5 million, or roughly US$280, per motorcycle. He also said the amount could change and that the government is still deciding which brands would qualify. [ANTARA News Agency](https://en.antaranews.com/news/427432/indonesias-rp5m-e-motorcycle-incentive-awaits-finance-regulation?ref=southeastasiaconnect.com)

That distinction matters for Indonesia’s electric-vehicle industry. A clear incentive could support local assembly and supplier demand, but factories cannot plan around a benefit whose rules, start date and eligible products are still open.

The proposal has been discussed as a staged programme, with an initial ambition involving about six million motorcycles. That is a policy target, not a completed conversion or confirmed purchase commitment.

Manufacturers and buyers should watch for the signed Finance Ministry regulation, the final per-unit amount, local-content requirements and a firm implementation date. Those details will determine whether the proposal changes demand.

The final design will also decide whether the support strengthens domestic manufacturing. Rules on local content, battery supply and dealer participation could spread demand through Indonesian suppliers, while loose eligibility could direct much of the benefit towards imported components. The regulation therefore matters beyond the headline subsidy amount.

## Source note

Industry Minister Agus Gumiwang Kartasasmita said the programme cannot begin until the Finance Ministry issues its regulation. The incentive amount, eligible brands and timing remain unsettled.

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