The Ministry of Energy and Mineral Resources has confirmed that incentives for electric motorcycle conversion will continue in 2025 to support the development of Indonesia's electric vehicle (EV) ecosystem.

This information was provided by the ministry's Director General of Renewable Energy and Energy Conservation, Eniya Listiani Dewi, in an interview with media sources on 21st January, 2025.

However, Dewi mentioned that discussions regarding the funding for these incentives are still ongoing, and therefore, the target for electric motorcycle conversion in 2025 has yet to be set.

Regarding the progress of electric motorcycle conversions in 2024, Dewi noted that incentives had been granted for the conversion of 1,111 petrol-powered motorcycles to electric motorcycles, representing a substantial increase from 2023, when only 145 units were converted.

In August 2024, the Ministry of Energy and Mineral Resources launched a programme to convert 1,000 petrol-powered motorcycles to electric vehicles at no cost, aiming to reduce carbon emissions. The funding for this initiative does not come exclusively from the government budget.

The Ministry is collaborating with partners, including companies in the energy and mineral resources sectors, who are acting as sponsors for the programme. The Ministry provides IDR 10 million (US$ 610) per motorcycle unit being converted.

Dewi indicated that if a widespread transition to electric vehicles occurs in Indonesia, it could lead to a reduction of up to 132.25 million tons of CO2 emissions.