Electric two-wheeler incentives were initially scheduled to begin disbursing across Indonesia in September 2026. However, the government has yet to make an official announcement regarding the specifics of the assistance.

One of the obstacles is the absence of official regulations to serve as the legal basis for the policy of providing incentives for electric two-wheelers.

First, there must be a Minister of Finance Regulation (PMK) that forms the basis for the electric two-wheeler incentive policy.

However, the government has yet to confirm the implementation date for the electric two-wheeler incentive. The amount has reportedly been changed from IDR 5 million to IDR 3 million (from US$ 280 to US$ 170).

When asked for confirmation, a representative from the Ministry of Energy and Mineral Resources (ESDM) revealed other factors that have prevented the electric two-wheeler incentive from being implemented.

"Because we're still discussing this, a draft Presidential Regulation is also needed. So, we're currently preparing that," said Eniya Listiani Dewi, Director General of New, Renewable Energy, and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources, when met in Jakarta on September 2nd.

She also could not confirm whether the electric two-wheeler incentives would remain in place for the September 2026 period.

She further revealed that the concept of the electric two-wheeler incentives to be provided is still under discussion.

"I'm also discussing this with the State Secretariat and the developers, and of course with the Ministry of Industry. It's all under the Energy Transition Task Force," Eniya emphasised.

Legal umbrella needed

Eniya emphasised the need for regulations governing incentives for electric two-wheelers. For example, Presidential Decree No. 55 of 2023, which regulates Battery-Based Electric Motor Vehicles (KBLBB), was later revised through Presidential Decree No. 79.

"Yesterday's decision was that a Presidential Decree was needed (to cover the regulations for electric two-wheeler incentives)," said Eniya.

In Presidential Decree No. 79, regulations regarding incentives are also included, such as in Article 17. It states that the Central Government and Regional Governments provide incentives to accelerate the KBLBB programme for road transportation.

The second point explains that market incentives are provided in the form of financial and non-financial incentives.

The regulations also apply to incentive recipients and vehicle criteria, including imported electric cars, both fully assembled and locally assembled, also known as completely knocked down (CKD).