Indonesia Widens Subsidy Access for Electric Bikes after Poor Uptake

August 29, 2023, 04.41 PM | Source: Reuters
Indonesia Widens Subsidy Access for Electric Bikes after Poor Uptake

ILUSTRASI. Electric Bikes

ELECTRIC VEHICLE - JAKARTA. Indonesia's government has widened public access to a 7 million rupiah ($458.87) subsidy to buy an electric motorcycle after a lack of uptake due to limited eligibility, as it aims for long-term mass adoption of electric vehicles (EVs).

The Southeast Asian country of 270 million people, one of the world's largest users of motorcycles, has seen just 2,429 applications for the subsidy, or 1.2% of the year's target of 200,000 units.

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"The basis to change the policy is to accelerate the development of EVs ecosystems in the country and to create a cleaner Indonesia," Industry Minister Agus Gumiwang Kartasasmita said in a statement.

Indonesia currently has more than 120 million motorcycles on its roads and is seeking to reduce fuel reliance and achieve a net zero emission target by 2060. It is also a major source of nickel used in EV batteries and is seeking to attract global EV manufacturers.

The government plans to allocate 7 trillion rupiah ($458.87 million) from state funds to support the sales of 800,000 new electric motorcycles and the conversion of 200,000 combustion engine motorcycles by 2024.

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The policy is being expanded to cover all Indonesians over 16 years of age having previously applied only to recipients of government assistance, such as home electricity subsidies.

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