Indonesian government expands electric motorcycle subsidy program
The Indonesian government’s policy of providing subsidies for the purchase of electric motorcycles will have an impact on the battery-based motorcycle industry, which may cause problems for traditional fuel motorcycle manufacturers.
For years, electric motorcycle manufacturers, mainly from Japan, have dominated the Indonesian car market. Now, however, the government has special incentives for electric motorcycles, raising questions about the future fate of these manufacturers. One concern is how to continue producing conventional motorcycles.
Table of Contents
Electric motorcycle penetration is low in Indonesia
The Indonesian government has expanded the scope of a 7 million rupee ($458.87) subsidy for the public to buy electric scooters, as the country’s government aims for long-term mass adoption of electric vehicles as it lacks opportunities to buy electric scooters due to limited eligibility.
The Southeast Asian nation of 270 million people is one of the world’s largest motorcycle users, but only 2,429 applications for that subsidy represent just 1.2 percent of this year’s 200,000-vehicle target.
Industry Minister Agus Gumiwang Kartasasmita said in a statement, “The change in policy is based on accelerating the development of the country’s electric vehicle ecosystem and creating a cleaner Indonesia.”
Indonesia currently has more than 120 million motorcycles on the road and is seeking to reduce its dependence on fuel and achieve a net-zero emissions target by 2060. Indonesia is also a major source of nickel used in electric vehicle batteries and is seeking to attract global electric vehicle manufacturers.
The government plans to allocate Rs 7 trillion ($458.87 million) from state funds by 2024 to support the sale of 800,000 new electric motorcycles and the retrofitting of 200,000 internal combustion engine motorcycles.
Indonesia electric motorcycle market information
Indonesia electric motorcycle selected market information
Company
Establishment time
Country/region
Specificities
Swap/Smoot
2019
Indonesia
Smoot has installed more than 700 battery swap stations in Jakarta and Bali, Indonesia
Gesits
2018
Indonesia
Assembled and manufactured in Indonesia, 3-year warranty
U-winfly
2001
Indonesia
Founded by Chinese entrepreneurs, electric bicycle/light motorcycle brand
Gogoro
2011
China-Taiwan
There are more than 2,400 transformer stations in Taiwan, China
Shark Bay Technology
2018
China
Shark Bay Technology expects to complete the Blue Shark Gigafactory, a vertically integrated production line from raw materials to final products, by 2023
NIU
2014
China
NIU will launch GOVA in Indonesia at the end of 2020
Indonesian government expands electric motorcycle subsidy program
The Indonesian government recently announced that it will expand the battery-based electric motorcycle purchase subsidy program to accelerate the construction of the electric vehicle ecosystem and promote a cleaner Indonesia.
Content of policy
The Indonesian government has issued a new decree to further promote the popularity of electric motorcycles. Under the new policy, each ID number can receive a subsidy for the purchase of an electric motorcycle. The goal of this policy change is to promote the rapid development of Indonesia’s electric vehicle ecosystem and achieve environmentally friendly and clean modes of transportation.
Government influence
In a recent statement, Industry Minister Agus stressed that the move will have a broad impact on Indonesia’s economy and society. First of all, through the government’s vehicle purchase subsidy, residents can enjoy a discount of 7 million rupiah per electric motorcycle, reducing the motorcycle battery cost and enhancing the attractiveness of electric vehicles.
Second, the policy stipulates that vehicle purchase subsidies only apply to residents with the same ID number who buy electric motorcycles for the first time to ensure a reasonable allocation of resources. vehicle buyers need to meet certain conditions, such as being at least 17 years old and having an electronic identity vehicled.
Promote industrial development
The Minister of Industry stressed that the implementation of this policy will stimulate the growth of the electric vehicle industry, promote the improvement of industrial productivity and competitiveness, and will also create more job opportunities. The government will pay the amount of subsidies for the purchase of vehicles to industrial enterprises, thus increasing the power of electric motorcycle production and promoting the upgrading and development of the supply chain.
In addition, manufacturers who receive subsidies for vehicle purchases must meet the minimum 40 percent requirement for domestic components, which will further promote the development of the local industrial chain.
Data verification
To ensure the effective implementation of the policy, buyers’ ID numbers will be verified against data from the population and civil records of the Ministry of the Interior, which requires dealers to integrate using an information system provided by the Ministry of Industry, the “Information System for Subsidies for the Purchase of Electric Motorcycles”. This data system will ensure the fairness and transparency of the policy and enable the smooth disbursement of subsidies.
Business partner
According to statistics, more than a dozen companies have cooperated to provide 30 electric motorcycle models, and joined hands with the government to promote the development of clean energy transportation. With the expansion of the government’s subsidy program, the electric motorcycle market is expected to usher in greater growth momentum, contributing positively to Indonesia’s sustainable development.
In conclusion, the Indonesian government’s electric motorcycle purchase subsidy program will inject new vitality into the electric vehicle industry, promote the popularization of clean energy transportation modes, and lay a solid foundation for a cleaner and more sustainable future for Indonesia. This initiative will not only benefit environmental protection, but also bring about positive changes at the economic and social level.
Motorcycle transformation and challenges
The Indonesian government’s policy of providing subsidies for the purchase of electric motorcycles will have an impact on the battery-based motorcycle industry, which may cause problems for traditional lead acid motorcycle battery manufacturers.
Regarding the prospects of traditional fuel motorcycle manufacturers, the impact of this policy on the industry will depend on a number of factors, such as the adoption rate of electric bikes, the company’s strategy, and the government’s support in promoting industrial transformation.
Nevertheless, in the next few years, traditional fuel motorcycle manufacturers will still be around. At present, the use of electric motorcycles is still relatively small. The difference in the energy sources of the two, namely gasoline and electricity, also causes the components to be very different.
For example, electric motorcycles that do not use lubricating oil could have broad implications for lubricant manufacturers, who are part of the supply chain of traditional fuel motorcycle manufacturers. The biggest impact on the fuel motorcycle manufacturing industry will appear in the fuel motorcycle parts manufacturing industry.
At the macro level, other parts industries such as tires will not be affected, and about 45% of the parts industry, including motorcycle battery cable and motorcycle controller, will all be affected.
Electric motorcycle industry prospects
At present, the electric motorcycle policy is having a significant impact on the traditional motorcycle industry, but there are still many uncertainties about the development prospects of the electric motorcycle market.
Traditional fuel motorcycle manufacturers need to take proactive measures to adapt to market changes to ensure they remain competitive with the competition. At the same time, the government and industry stakeholders also need to consider supporting policies for industrial transformation to smoothly promote the development of the electric motorcycle industry.
Lucky
Hi, I am Lucky, graduated from a well-known university in China, now mainly engaged in article editing on lithium motorcycle batteries, and the battery swapping station, I am committed to offering services and solutions about battery swap station for various industries.
Indonesian government expands electric motorcycle subsidy program
The Indonesian government’s policy of providing subsidies for the purchase of electric motorcycles will have an impact on the battery-based motorcycle industry, which may cause problems for traditional fuel motorcycle manufacturers.
For years, electric motorcycle manufacturers, mainly from Japan, have dominated the Indonesian car market. Now, however, the government has special incentives for electric motorcycles, raising questions about the future fate of these manufacturers. One concern is how to continue producing conventional motorcycles.
Electric motorcycle penetration is low in Indonesia
The Indonesian government has expanded the scope of a 7 million rupee ($458.87) subsidy for the public to buy electric scooters, as the country’s government aims for long-term mass adoption of electric vehicles as it lacks opportunities to buy electric scooters due to limited eligibility.
The Southeast Asian nation of 270 million people is one of the world’s largest motorcycle users, but only 2,429 applications for that subsidy represent just 1.2 percent of this year’s 200,000-vehicle target.
Industry Minister Agus Gumiwang Kartasasmita said in a statement, “The change in policy is based on accelerating the development of the country’s electric vehicle ecosystem and creating a cleaner Indonesia.”
Indonesia currently has more than 120 million motorcycles on the road and is seeking to reduce its dependence on fuel and achieve a net-zero emissions target by 2060. Indonesia is also a major source of nickel used in electric vehicle batteries and is seeking to attract global electric vehicle manufacturers.
The government plans to allocate Rs 7 trillion ($458.87 million) from state funds by 2024 to support the sale of 800,000 new electric motorcycles and the retrofitting of 200,000 internal combustion engine motorcycles.
Indonesia electric motorcycle market information
Indonesian government expands electric motorcycle subsidy program
The Indonesian government recently announced that it will expand the battery-based electric motorcycle purchase subsidy program to accelerate the construction of the electric vehicle ecosystem and promote a cleaner Indonesia.
Content of policy
The Indonesian government has issued a new decree to further promote the popularity of electric motorcycles. Under the new policy, each ID number can receive a subsidy for the purchase of an electric motorcycle. The goal of this policy change is to promote the rapid development of Indonesia’s electric vehicle ecosystem and achieve environmentally friendly and clean modes of transportation.
Government influence
In a recent statement, Industry Minister Agus stressed that the move will have a broad impact on Indonesia’s economy and society. First of all, through the government’s vehicle purchase subsidy, residents can enjoy a discount of 7 million rupiah per electric motorcycle, reducing the motorcycle battery cost and enhancing the attractiveness of electric vehicles.
Second, the policy stipulates that vehicle purchase subsidies only apply to residents with the same ID number who buy electric motorcycles for the first time to ensure a reasonable allocation of resources. vehicle buyers need to meet certain conditions, such as being at least 17 years old and having an electronic identity vehicled.
Promote industrial development
The Minister of Industry stressed that the implementation of this policy will stimulate the growth of the electric vehicle industry, promote the improvement of industrial productivity and competitiveness, and will also create more job opportunities. The government will pay the amount of subsidies for the purchase of vehicles to industrial enterprises, thus increasing the power of electric motorcycle production and promoting the upgrading and development of the supply chain.
In addition, manufacturers who receive subsidies for vehicle purchases must meet the minimum 40 percent requirement for domestic components, which will further promote the development of the local industrial chain.
Data verification
To ensure the effective implementation of the policy, buyers’ ID numbers will be verified against data from the population and civil records of the Ministry of the Interior, which requires dealers to integrate using an information system provided by the Ministry of Industry, the “Information System for Subsidies for the Purchase of Electric Motorcycles”. This data system will ensure the fairness and transparency of the policy and enable the smooth disbursement of subsidies.
Business partner
According to statistics, more than a dozen companies have cooperated to provide 30 electric motorcycle models, and joined hands with the government to promote the development of clean energy transportation. With the expansion of the government’s subsidy program, the electric motorcycle market is expected to usher in greater growth momentum, contributing positively to Indonesia’s sustainable development.
In conclusion, the Indonesian government’s electric motorcycle purchase subsidy program will inject new vitality into the electric vehicle industry, promote the popularization of clean energy transportation modes, and lay a solid foundation for a cleaner and more sustainable future for Indonesia. This initiative will not only benefit environmental protection, but also bring about positive changes at the economic and social level.
Motorcycle transformation and challenges
The Indonesian government’s policy of providing subsidies for the purchase of electric motorcycles will have an impact on the battery-based motorcycle industry, which may cause problems for traditional lead acid motorcycle battery manufacturers.
Regarding the prospects of traditional fuel motorcycle manufacturers, the impact of this policy on the industry will depend on a number of factors, such as the adoption rate of electric bikes, the company’s strategy, and the government’s support in promoting industrial transformation.
Nevertheless, in the next few years, traditional fuel motorcycle manufacturers will still be around. At present, the use of electric motorcycles is still relatively small. The difference in the energy sources of the two, namely gasoline and electricity, also causes the components to be very different.
For example, electric motorcycles that do not use lubricating oil could have broad implications for lubricant manufacturers, who are part of the supply chain of traditional fuel motorcycle manufacturers. The biggest impact on the fuel motorcycle manufacturing industry will appear in the fuel motorcycle parts manufacturing industry.
At the macro level, other parts industries such as tires will not be affected, and about 45% of the parts industry, including motorcycle battery cable and motorcycle controller, will all be affected.
Electric motorcycle industry prospects
At present, the electric motorcycle policy is having a significant impact on the traditional motorcycle industry, but there are still many uncertainties about the development prospects of the electric motorcycle market.
Traditional fuel motorcycle manufacturers need to take proactive measures to adapt to market changes to ensure they remain competitive with the competition. At the same time, the government and industry stakeholders also need to consider supporting policies for industrial transformation to smoothly promote the development of the electric motorcycle industry.