Govt Aims to Incentivise Electric Conversion for Motorcycles

TEMPO.CO, Jakarta - The Ministry of Transportation on Tuesday proposed an incentive scheme for traditional internal combustion-engined motorcycles that are converted into electric motorcycles, which under Indonesian law is classified as KBLBB. This step, the Ministry believes, is an attempt to accelerate the mass use of electric vehicles and help reduce reliance on fossil fuels.

“State Ministries and agencies are discussing the possibility of introducing subsidies to convert conventional fuel-powered to electric-powered motorcycles,” said Transportation Minister Budi Karya Sumadi in his statement on September 20.

He believes such an incentive can be made available by diverting the subsidies allocated for fuel. The Minister also expects provincial governments will redirect regional budgets that are less productive to subsidize electric motorcycle conversions. 

The current cost to convert an internal combustion engine motorcycle is still deemed high with an average cost of Rp15 million. But the price ceiling is believed to get lower as more automotive shops provide conversion services.

The Energy and Mineral Resources Ministry (ESDM) is intensifying the conversion program in the form of manufacturing the main components to the finished product form of motorcycles. This year, it is targeted that there will be 120 electric motorcycle conversions and this will be even more massive in 2023.

DICKY KURNIAWAN

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