Indonesia Aiming to Produce 2 Million Electric Motorcycles by 2024

The Indonesian government is planning to manufacture 2 million units of electric motorcycles by 2024 as part of an effort to cut carbon emissions and reduce fossil fuel consumption.

Minister of Industry, Agus Gumiwang Kartasasmita, said he is optimistic that this target will be achieved with support from the supply side.

To achieve the target, the Ministry of Industry will need to fulfill certain responsibilities on the supply side, while other connected ministries and institutions, including state-run electricity provider PT PLN, will need to carry out the groundwork related to the infrastructure, the minister noted.

Currently, Indonesia has 35 electric motorcycle factories with a production capacity of 1.1 million units per year, and their number is set to increase with Singapore’s ION Mobility planning to also build a factory in Karawang, West Java.

Nevertheless, the industry minister said the utility of electric motorcycles is not as high as he would like as market demand still needs to be built—a task he said his ministry will pursue.

If the demand for electric motorcycles is developed, I think the industry will also adjust, including the 2 million (units) target production," he added.

According to the minister, the potential of the electric vehicle market in Indonesia is vast. Sales of four-wheeled and two-wheeled vehicles have a 1:6 ratio, he added.

In order to push the acceleration of this transformation, several presidential regulations and instructions have been issued as the basis and concrete evidence of the government's commitment to accelerating the electric vehicle transformation in the country.

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