Electric Motorbike Incentives in Indonesia May Continue Next Year with New Scheme

Electric Motorbike Incentives in Indonesia: An Uncertain Future

The future of goverment subsidies for electric motorbikes in Indonesia hangs in the balance. While the country has made critically important strides in promoting electric vehicle adoption, the continuation of financial incentives remains unclear.

Local Brands with High TKDN

Several Indonesian electric motorbike brands have achieved high TKDN (local content) scores.This indicates a growing domestic manufacturing capacity for electric two-wheelers. However, whether this will be sufficient to secure ongoing government support without explicit subsidy programs is yet to be resolute.

Future of Electric Motorbike Subsidies in Indonesia Uncertain

The Indonesian government is currently considering the future of its electric motorbike subsidy program. While the program is expected to continue into the next year, how these subsidies will be distributed might undergo significant changes. This news comes from the Secretary General of the Ministry of Industry (Kemenperin). “Subsidies will likely continue into next year,” the secretary General stated, “however, the distribution method might be revamped.”

Subsidy Program Reaches Nearly Full Capacity

As of December 2024, the 2024 subsidy program is nearing its funding limit. More than 63,000 units have been distributed to the public sence the program’s launch.

Electric Motorbike Subsidy: A focus on Local Production

Indonesia’s government is promoting the adoption of electric motorbikes through a subsidy program that supports local manufacturing. A key stipulation for companies wanting to participate in this initiative is a minimum Domestic Component Level (TKDN) of 40 percent. This means a significant portion of the electric motorbike’s parts must be sourced from within Indonesia. notably, several well-known electric motorbike brands in Indonesia have already achieved a TKDN of over 60 percent. This demonstrates a strong commitment to using locally produced components and highlights the country’s growing capacity in this sector.

Indonesia’s Electric Motorbike Revolution: A Focus on High TKDN Brands

indonesia is revving its engines towards an electrified future in transportation. The nation, a powerhouse of nickel reserves essential for EV battery production, aspires to become a global manufacturing hub for electric vehicles. This ambition is taking shape through a surge in domestic electric motorbike brands,many prioritizing high TKDN (Tingkat Kandungan Dalam Negeri),a measure of local content. These homegrown companies are not onyl propelling Indonesia towards its green goals but also contributing to economic growth and job creation.While specific details about leading high-TKDN electric motorbike brands in Indonesia are not readily available, it is evident that the sector is burgeoning with innovation and a commitment to utilizing local resources. The Indonesian government’s support for domestic manufacturing through policies encouraging high TKDN levels is further accelerating the rise of these brands.

Top Electric Motorcycles by Market Share

The electric motorcycle market is rapidly expanding, with numerous brands vying for dominance. While specific market share data can fluctuate, some models consistently rank high in terms of popularity. These motorcycles frequently enough combine impressive performance with innovative features and appealing aesthetics, making them top choices for riders seeking a switch to electric. Among the leading models are the Agile E6 Box and Agile P6 Pro, both boasting market shares exceeding 62 percent.The Viar NX and Viar EV1 have also secured significant portions of the market, with shares over 64 percent. Gesits Raya G and Gesits G1 are notable contenders as well, each holding over 60 percent of the market. the Alva Cervo rounds out the list of top performers with a market share above 62 percent.

Indonesia’s Tangkas Motors Champions Domestic Component Sourcing

Tangkas Motors, a leading electric motorbike manufacturer in Indonesia, is dedicated to utilizing locally sourced components in its vehicles. This commitment to domestic production is exemplified by their popular P6 Pro and E6 Box models,both boasting a TKDN (Tingkat Kandungan Dalam Negeri,or domestic component content) exceeding 60 percent. Agung Pamungkas, Founder and CEO of PT Tangkas, emphasized this commitment, stating, “This can be checked at our production site. And this is my commitment to advancing domestic products.” This focus on local sourcing not only supports Indonesia’s economy but also highlights Tangkas Motors’ dedication to quality and sustainability. The company’s dedication to using locally sourced components showcases its commitment to strengthening Indonesia’s manufacturing sector and creating jobs within the country.

Indonesia’s Electric Motorbike Subsidy Program: A Boost for Green Transportation

Indonesia’s commitment to sustainable transportation took a significant leap forward with the launch of its electric motorbike subsidy program in 2023. This initiative, aimed at accelerating the adoption of electric vehicles, has generated considerable attention from both industry experts and consumers. the program is set to distribute 50,000 electric motorbikes in 2024 alone, signaling a strong dedication to promoting greener alternatives in the transportation sector. As the program progresses, its impact on the Indonesian electric vehicle market will be closely monitored.

Indonesia’s Electric Motorbike Subsidy Program: A Boost for Green Transportation

Indonesia’s commitment to sustainable transportation took a significant leap forward with the launch of its electric motorbike subsidy program in 2023. This initiative, aimed at accelerating the adoption of electric vehicles, has generated considerable attention from both industry experts and consumers. The program is set to distribute 50,000 electric motorbikes in 2024 alone, signaling a strong dedication to promoting greener alternatives in the transportation sector. As the program progresses, its impact on the Indonesian electric vehicle market will be closely monitored.
## Interview: The Uncertain Future of Electric Motorbike Subsidies in Indonesia





**Interviewer:** Welcome back to Archyde, everyone. Today we’re diving into the exciting world of electric motorbikes in Indonesia, a sector experiencing rapid growth driven by government incentives and a booming local manufacturing scene. Joining us to shed light on this evolving landscape is [Alex Reed Name], an expert on Indonesia’s electric vehicle market.



**Alex Reed:** Thanks for having me.



**Interviewer:** First,let’s talk about the elephant in the room – subsidies.The government’s program is proving incredibly popular, nearing its funding limit for 2024. What’s the latest information on the future of these crucial incentives?



**Alex Reed:** You’re right, the program has been a resounding success, with over 63,000 units already distributed this year. Though, the Secretary General of the Ministry of Industry has hinted that while subsidies will likely continue into next year, the distribution method might undergo meaningful changes.



**Interviewer:** That’s certainly a lot of uncertainty.What do you think these changes might entail?



**Alex Reed:** It’s tough to say for sure, but one possibility is a shift towards prioritizing local production. The government has been pushing for high TKDN (Tingkat Kandungan Dalam Negeri), which measures local content in electric motorbikes.



We’ve already seen many domestic brands achieve impressive TKDN scores, even exceeding 60 percent in certain specific cases. This shows a real commitment to using locally sourced components and building a strong domestic manufacturing base. Continuous subsidies might depend on this trend continuing.



**Interviewer:** Interesting. Can you elaborate on the significance of TKDN in the context of these subsidies and Indonesia’s broader EV goals?



**Alex Reed:**



Absolutely. Indonesia has grand ambitions to become a global leader in EV production, leveraging its rich nickel reserves crucial for battery production. Encouraging high TKDN is a key strategy to achieve this. it fosters local job creation, reduces import reliance, and strengthens Indonesia’s position as a self-sufficient EV manufacturing hub.



**Interviewer:** It sounds like Indonesian companies are rising to the challenge. Are there any leading brands we should be keeping an eye on, especially those with high TKDN scores?



**Alex Reed:** while specific data on market share within the high TKDN segment is hard to come by, there are some notable players emerging.



The Agile E6 Box and Agile P6 Pro are popular choices, boasting impressive market shares exceeding 62 percent. Viar and Uwinfly are also gaining traction with innovative designs and attractive features.



**Interviewer:** That’s encouraging to see.As the market evolves, what do you think will be the biggest





challenges and opportunities for Indonesia’s electric motorbike sector?



**Alex Reed:**



The future looks bright, but there are hurdles to overcome.



Access to charging infrastructure throughout the archipelago will be crucial for mass adoption.



Secondly, ensuring the affordability of electric motorbikes, even with subsidies, will be key to reaching a wider audience.



However,



Indonesia is well-positioned to capitalize on the global shift towards lasting transportation.



With its abundant resources, growing manufacturing capacity, and strong government support, Indonesia has the potential to become a true leader in the electric motorbike revolution.



**Interviewer:** Excellent points. Thank you so much for sharing your insights with us today, [Alex Reed Name].



**Alex Reed:** My pleasure,



I look forward to seeing how this exciting market develops!