Indonesia’s electric motorcycle market hits a speed bump following subsidy rollback

[JAKARTA] Indonesia’s electric motorcycle market faces headwinds from sluggish consumer spending and uncertainty over government incentives, raising concerns among industry players about the pace of adoption in South-east Asia’s largest vehicle market.

Slowing demand has dealt a heavy blow to motorcycle manufacturers, most of which are local players, Budi Setiyadi, chairman of the Indonesia Electric Motorcycle Association (Aismoli), told The Business Times.

“Many companies have scaled back production; and the ripple effects are wide, hitting not only manufacturers but also component suppliers – many of which are small and medium enterprises.”