Jakarta. Indonesia’s electric motorcycle industry has urged the government to reinstate consumer subsidies to help boost sales to 100,000 units this year and accelerate the country’s vehicle electrification program.

The Indonesian Electric Motorcycle Industry Association (Aismoli) said a more conservative sales target stands at 70,000 units -- still above the approximately 61,000 units recorded in 2025.

Aismoli chairman Budi Setyadi said the industry remains optimistic that sales could reach 100,000 units if government incentives are reintroduced.

“If there is support or subsidies from the government, we are confident sales can reach 100,000 units,” Budi said on Tuesday.

He noted that domestic demand potential is significantly higher than current projections. In 2024, when the government provided purchase subsidies, electric motorcycle sales reached 77,000 units. At the time, buyers received Rp 7 million per unit for electric motorcycles with at least 40% local content.

Budi cautioned that if subsidies are reinstated, the time lag between policy announcement and implementation should be minimized to avoid market uncertainty.

He added that electric motorcycles are increasingly becoming a strategic option for daily transportation in Indonesia, underscoring the need for swift and concrete policy action following government signals to accelerate EV adoption.

Last week, Industry Minister Agus Gumiwang Kartasasmita said the government is drafting regulations for the phased reduction of gasoline-powered motorcycles while accelerating domestic electric vehicle adoption.

“The government is preparing regulations requiring manufacturers operating in Indonesia to scale up electric motorcycle production, as we aim for all domestically sold motorcycles to be electric,” Agus said.

He added that while production of conventional motorcycles will not be halted, output will be redirected toward export markets in Africa, the Middle East, and South America.