Minister Of Industry: No Budget Allocated For Electric Motorcycle Subsidies In 2025

KOMPAS.com/DIO DANANJAYA

Minister Of Industry: No Budget Allocated For Electric Motorcycle Subsidies In 2025

Thursday, 07 Nov 2024

In the midst of Indonesia's efforts to reduce carbon emissions and promote the use of renewable energy, the continuation of the electric motorcycle subsidy program remains uncertain. Minister of Industry Agus Gumiwang stated that there is currently no budget available to extend the electric motorcycle subsidy program.

"Yes, at the moment there is no budget, but I believe that if possible, by 2025, there could be a budget adjustment allocated to the Ministry of Industry, not for subsidies, but for incentives for the purchase of electric motorcycles, which I think would be beneficial," Agus remarked in Bekasi on November 1, 2024.

It is important to note that under the Minister of Industry Regulation Number 21 of 2023, the electric motorcycle subsidy is only available for the years 2023 and 2024. According to the regulation, a maximum quota for subsidies has been set at 200,000 units for 2023 and 600,000 units for 2024.

In 2023, only 5 percent of the subsidy allocation was utilized, amounting to approximately 11,000 units. The lack of public interest in utilizing the subsidy has led to a budget allocation for 2024 being set at only 50,000 units at the beginning of the year.

In August, the Ministry of Industry increased the quota to approximately 60,000 units. According to the Sisapira website, the remaining budget allocation for 2024 stands at 0 units. To date, a total of 60,749 electric motorcycles have received a subsidy of IDR 7 million per unit.

Previously, the Chairman of Aismoli, Budi Setiyadi, indicated that the subsidy may not continue into the next year due to the absence of additional budget allocations.

"I am uncertain about the policies that the President will implement in 2025. However, I hope that the relevant Ministry can promptly report on this situation so that appropriate policies can be established," Budi stated to Kompas.com on October 29, 2024.