Old bikes learn new tricks in Indonesia

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Hello reader,

Most of the time that I lived in Hanoi, I drove pretty beat-up scooters.

While there is some charm to an old bike rattling down the street losing nuts and bolts as it goes, I finally upgraded to something a little more reliable a couple of years ago. The improvement in my quality of life was dramatic, as I no longer had to make trips to repair shops at least once a month.

I’ve been tempted to upgrade again to an electric scooter, but I’m attached to my current bike, and the cost to make the switch is relatively high. If I could simply convert my current ride to an electric version, I would jump at the chance.

Indonesia is betting that plenty of drivers in the nation feel the same way as I do. The government has launched a program to convert thousands of old-school two-wheelers into EVs. However, these efforts have been stymied by red tape so far. Read on to find out why.

Today we look at:

• Indonesia still charging its EV conversion program
• A Singaporean robotics firm aiming to change last-mile delivery
• Other newsy highlights such as SPH Media laying off tech workers and global tech giants investing billions in AI.

Premium summary

Indonesia revs up EV ambitions

Image credit: Timmy Loen

Indonesia has ambitious plans to convert some 200,000 traditional two-wheel vehicles into electric vehicles (EVs) by 2030.

However, red tape has reportedly stalled the process, and the government’s goal of turning 4,000 bikes into EVs by this year is unlikely to be met.

• Start your engines: The government has earmarked US$90 million for the program, and repair shops are eligible for US$640 in subsidies for each vehicle they convert. The process involves replacing engine and fuel systems for these units.
• Still in first gear: Repair shops need certification from the Ministry of Energy to convert bikes into EVs, but so far only 24 workshops have been approved. While a bike can be converted in just a few days, repair shop owners say it could take three months for the government to reimburse them and conduct safety checks.
• Trust the process: While the program is off to a slow start, some repair shop owners say it’s worth waiting for the bureaucrats to work out the kinks. Some are even planning to seek additional investment to expand their shops if the government accelerates reimbursements.

Read more: Indonesia wants to turn bikes into EVs, but red tape stalls funds

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