Jayanty Nada Shofa, Jakarta – The government on Tuesday said that the electric motorbike conversion, which is now enjoying an incentive scheme, could help Indonesia reduce its reliance on fuel oil imports.
Indonesia is trying to drive up the adoption of electric vehicles, among others, by subsidizing the conversion of conventional two-wheelers.
Incentives for the conversion of fuel-powered motorbikes into electric ones amount to Rp 7 million ($469) for each unit. The overall motorbike conversion for a 110cc-150cc motorbike today costs not more than Rp 17 million. This year, 50,000 converted electric motorbikes will get an incentive.
"The motorbike conversion initiative aims not only to support the EV ecosystem but also cut down our fuel oil imports," Dadan Kusdiana, the director-general for renewable energy at the Mineral Resources Ministry, told a virtual conference on Tuesday.
According to Dadan, the electric motorbike conversion program can reduce fuel imports by 20,000 kiloliters. Dadan added, "this will help us save $10 million on foreign exchange."
The Mineral Resources Ministry statistics show Indonesia's total fuel import rose from 20.87 million kiloliters in 2020 to 22.09 million kiloliters in 2021. About 9.84 million kiloliters of the 2021 fuel imports were 92-octane or RON 92 gasoline. Indonesia imported 8.15 million kiloliters of RON 88 and RON 90 gasoline that year.
Dadan told the conference that the motorbike conversion program could also help people slash their Pertalite (RON 90 gasoline) spending. "If we use last month's Pertalite price estimates, motorcyclists can save Rp 2.77 million a year," he said.
The government can also save up to Rp 18.6 billion in Pertalite compensation by converting 50,000 two-wheelers this year, according to Dadan.
Motorcycles are the most popular type of vehicle in Indonesia. Statista reported that Indonesia's motorbike fleet amounted to 125.27 million motorcycles in 2022, up from 120 million units in the previous year.
In 2024, Indonesia will subsidize the conversion of 150,000 fuel-powered motorbikes. The Southeast Asian country aims to have 13 million electric motorcycles on its roads by 2030.