The electric motorcycle subsidy provided by the Government of Indonesia is intended to support individuals seeking to transition from conventional motorcycles to electric motorcycles.

Government incentives for the purchase of domestically produced electric motorcycles benefit not only consumers but also manufacturers. One such manufacturer is Astra Honda Motor (AHM), which is currently awaiting the disbursement of subsidies from the government.

"Yes, we are just waiting. And we still support whatever strategy the government adopts - wherever it is heading, Honda will certainly provide full support," stated Octavianus Dwi Putro, AHM Marketing Director, during a recent event in Jakarta.

Octavianus noted that the company has not yet received confirmation regarding the form of subsidy the Government will introduce in 2025.

However, based on circulating information, the subsidy is expected to be provided through the VAT DTP (Value Added Tax Borne by the Government) incentive. Under this scheme, the Government covers the VAT payment that would otherwise be borne by consumers or buyers.

In other words, VAT, which is typically charged to purchasers of certain goods or services, will be paid by the Government.

"We are not yet certain; for us, the response will come later. What is important is that the Government issues a policy with a positive purpose, and we will support its implementation for consumers," he further added.

"It is difficult to state what the ideal value should be. There must be a compromise based on the GovernmentÂ’s budget. The value will be relative, but we will comply with whatever is decided," he explained.

Previously, President Prabowo Subianto confirmed that the subsidy programme for the purchase of battery-based electric motorcycles in Indonesia would be reintroduced this year.

He made this announcement during a press statement regarding the requirement to retain foreign exchange earnings from natural resource (SDA) exports within the country. The statement was broadcast online via the Presidential SecretariatÂ’s YouTube channel on Wednesday, 19 February 2025.

"The five economic stimulus packages are: electricity tariff discounts; VAT DTP for property and automotive purchases; PPnBM DTP for the automotive sector, including electric and hybrid vehicles; tax subsidies DTP for electric motorcycles; and PPh DTP for labour-intensive sectors," said President Prabowo.

However, the President did not provide details regarding the specific subsidy scheme for electric motorcycles under the 2025 budget. Based on his statement, it is likely that the upcoming scheme will differ from the previous subsidy of IDR 7 million (US$ 420) provided in 2023–2024.