Indonesia electric scooter sales drop after government subsidies dry up

Key Takeaways:

• Government subsidies for electric two-wheelers ended, sharply reducing sales.
• Indonesia’s e-scooter market declined in 2025 after years of growth.
• Uncertainty over Prabowo’s stance casts doubt on sustained industry support.
• A trade body warns of a possible “collapse” of EV brands.
• Industry optimism persists regarding Indonesia’s overall market potential.

Main Article

The Immediate Decline

Indonesia’s electric two-wheeler market, once buoyed by strong incentive programs, experienced a notable drop in sales in 2025. Industry observers point to the drying up of a critical government subsidy scheme as the catalyst. “Indonesia’s electric two-wheeler sales fell in 2025 after a few consecutive years of robust growth,” reads the latest report.

Tracing Years of Growth

For several years, electric scooters spurred excitement among consumers seeking cleaner transportation options. This interest drove rapid expansion and drew global attention to Indonesia’s potential as a growing electric vehicle (EV) hub. Now, with numbers falling, the industry finds itself grappling with how to maintain momentum.

Impact of Ending Subsidies

According to local trade bodies, the withdrawal of government support undermined confidence among manufacturers and buyers alike. “Industry players blame [the sales slump] on the drying up of a government subsidy scheme,” explains the report. This financial support had helped offset the cost of new e-scooters, encouraging wider adoption.

Political Clouds and Market Uncertainty

Industry representatives also cite political uncertainty as adding further complications. “Uncertainty over Prabowo support fuels ‘collapse’ of EV brands,” a trade body warns, underscoring how fragile the sector’s growth can be when it depends heavily on public funding and political endorsement.

Looking Ahead

Despite the current challenges, many within the industry still regard Indonesia as holding substantial market potential—particularly if future policies strike a balance between government incentives, consumer affordability, and manufacturing readiness. As debates continue over how and when new support measures might emerge, the coming months will test whether Indonesia can once again steer its electric scooter market to growth.