Govt to extend electric motorcycle conversion incentives into 2025

Jakarta (ANTARA) - The Ministry of Energy and Mineral Resources confirmed that incentives for electric motorcycle conversion will continue to be provided in 2025 to foster the growth of Indonesia's electric vehicle (EV) ecosystem.

This announcement was made by the ministry's Director General of Renewable Energy and Energy Conservation, Eniya Listiani Dewi, when contacted by ANTARA here on Tuesday.

However, Dewi noted that discussions regarding the funding for these incentives are still ongoing. To this end, the target for the electric motorcycle conversion in 2025 has yet to be set.

In terms of the progress of the electric motorcycle conversion in 2024, Dewi stated that incentives had been granted for the conversion of 1,111 units of gasoline-powered motorcycles into electric motorcycles.

She highlighted that this figure represents a significant increase from 2023, when only 145 units were converted.

"This is a good increase to boost electric motorcycle conversion further this year," she remarked.

In August 2024, the Ministry of Energy and Mineral Resources launched a program aimed at converting one thousand gasoline-powered motorcycles to electric ones at no cost to help reduce carbon emissions.

The funding for converting one thousand units of motorcycles does not come entirely from the government budget.

In implementing this program, the Ministry of Energy and Mineral Resources is collaborating with its partners, such as business players in the energy and mineral resources sectors, who are participating as sponsors.

Meanwhile, the Ministry of Energy and Mineral Resources provides Rp10 million (around US$612.34) per motorcycle unit being converted.

Dewi emphasized that if Indonesians collectively switch their vehicles to electric options, it could lead to a reduction of up to 132.25 million tons of CO2 emissions.