Indonesia will provide new incentives to add momentum to its up-and-coming electric vehicle industry.
The incentives will start from March 20, aiming to attract investment from industry giants like Tesla.
7 million rupiah (about $458 million) will be disbursed to producers and retailers for each new motorcycle sold and for each converted into an electric bike.
Indonesia is keen to develop domestic EV production facilities to take advantage of its rich nickel reserves, an important material to produce batteries.
Tesla announced last week it would build a new “gigafactory” in Mexico, raising questions about whether it would invest in a similar facility in Asia.
Officials have been trying to attract investment from electric car makers such as Tesla and China’s BYD Auto.
South Korea’s LG and Hyundai have started construction on plants to assemble batteries and electric cars in the Southeast Asian country.