Electric Bike Producer Says Rp 7M Subsidy Has Ended, But Many Remain Uninformed

Jakarta. The government's Rp 7 million subsidy for electric motorcycle purchases ended when President Prabowo Subianto's new administration took office last weekend, with no clear indication of whether it will be renewed.
Despite the subsidy’s expiration, many potential customers remain unaware and continue to visit dealerships expecting substantial discounts, according to Eddy Chan, CEO of electric motorcycle manufacturer and distributor Yifang Group.
"We hope the new government under Mr. Prabowo will formally announce the end of the Rp 7 million subsidy so customers can explore other options for purchasing electric bikes without financial assistance," Eddy told Antara news agency.
Yifang Group, which operates an assembly plant in the Balaraja District of Tangerang Regency, saw steady sales growth while the subsidy was in place. However, sales have slowed since the subsidy ended.
A government website that regularly tracks the purchase of subsidized electric bikes noted the discontinuation of the subsidy for low-income buyers. Yet, no formal announcement has been made by the Industry Ministry, Eddy added.
"For middle- and upper-income buyers, the presence or absence of a subsidy doesn’t significantly impact their decision to buy motorcycles," he said.
The subsidy covered 60,000 electric motorcycles across the country, and the quota was reached earlier this month. However, many buyers, unaware of the situation, continue to visit dealerships expecting the discount, leading to disappointment.
"This lack of communication has contributed to the decline in electric motorcycle sales. The end of the subsidy should have been clearly announced to the public," Eddy said.
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