Indonesia electric motorcycle market faces shift and incentive delays

The electric motorcycle market in Indonesia is seeing a shift in dominance, with non-Japanese brands—including local manufacturers and companies from China—gaining significant ground. These players have been more aggressive in entering the relatively new electric segment, offering diverse designs, features, and competitive pricing compared to traditional Japanese brands like Honda and Yamaha.

However, the industry faces uncertainty due to delayed government incentives. Although incentives were expected to be implemented by September 2026, they remain pending as the market awaits the issuance of a Ministry of Finance Regulation (PMK). This delay has caused consumers to postpone purchases and has placed dealers at risk of bankruptcy. Moeldoko, Chairman of Periklindo, has urged the government to provide these incentives to support the industry and reduce reliance on fuel subsidies.