Electric Motorcycles Making Waves in Indonesia: Increasing Brand Holders and Positive Market Reception

- 05 June 2023 17:33 WIB
A new electric scooter model.
A new electric scooter model.

JAKARTADAILY.ID – It is becoming more and more apparent that electric motorcycles are now a common sight on the streets of major cities, especially in Jakarta, the capital. This shows that the Indonesian market is starting to embrace these environmentally friendly vehicles with a positive response.

According to data from the Indonesian Electric Motorcycle Industry Association (Aismoli), electric motorcycle sales have reached an impressive 48,000 units across Indonesia since 2019.

In the early stages of introducing electric motorcycles in 2019, there were only nine brand holders (APM) in Indonesia. However, that number has now significantly increased to 52 APMs.

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Electric motorcycles are no longer limited to online motorcycle taxis (ojek online or ojol) but are also being used for various purposes in businesses, government, and personal transportation. Although their sales figures are not yet comparable to conventional fuel-powered motorcycles, the presence of incentives and supporting infrastructure is expected to drive their future growth even further.

The growth in electric motorcycle sales in Indonesia is undoubtedly influenced by the implementation of Presidential Regulation (Perpres) No. 55 of 2019, which introduced the Battery Electric Vehicle (BEV) Program for Road Transportation. Budi Setiyadi, the Chairman of Aismoli, emphasizes that since the introduction of this regulation, the demand for electric motorcycles has consistently increased.

In addition to the sales figures, the number of brand holders (APMs) has also significantly increased.

"These days, we're seeing almost 48,000 electric motorcycles being used by the public. Initially, I thought it would be just a few, maybe people were still testing the waters, but the number has grown," said Budi Setiyadi during the "More Fun with Electric Motorcycles" dialogue at the Merdeka Barat 9 Forum (FMB9) on Monday, May 29, 2023.

Various Incentives

The electric vehicle ecosystem in Indonesia has seen significant progress after the issuance of Presidential Instruction (Inpres) No. 7 of 2022, which promotes the use of Battery Electric Vehicles (BEV) for official and personal purposes in government agencies.

To support this program, the government has allocated incentives for individuals who want to convert their old vehicles into electric ones. Sripeni Inten Cahyani, an expert in the electricity sector from the Ministry of Energy and Mineral Resources, explains that these incentives are funded by redirecting subsidies and compensations previously allocated for fossil fuels.

"Beyond benefiting the public, the electric vehicle conversion program aligns with the government's commitment to reducing greenhouse gas emissions," Sripeni explained during the FMB9 dialogue.

The Ministry of Transportation (Kemenhub) is also actively supporting the electric vehicle conversion program. The ministry facilitates authorized workshops that meet specific criteria set by Kemenhub for the official conversion of vehicles. While there were only 2-3 workshops in 2020, there are now 21 reputable workshops that meet the program's requirements.

The Ministry of Industry has also introduced Ministerial Regulation No. 6 of 2023, which specifies certain categories of individuals eligible for incentives. This includes recipients of People's Business Credit (KUR), Productive Micro-Business Assistance (BPUM), and customers with 450 VA/900 VA electricity subscriptions.


Editor: Suksmajati Kumara


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