Jakarta, Indonesia – Indonesia is embarking on a significant transformation of its motorcycle industry, aiming to steer future domestic production and sales towards electric models while dedicating conventional fuel-based motorcycles predominantly to export markets.
Industry Minister Agus Gumiwang Kartasasmita announced on Thursday in Jakarta that the government is actively formulating new regulations. These measures are designed to accelerate the adoption of electric vehicles across the nation, with a particular focus on the motorcycle segment.
The upcoming regulatory framework will specifically require manufacturers to establish and maintain sufficient production capacities for electric motorcycles to meet domestic demand. The ultimate goal is for all motorcycles sold within the Indonesian market to be electric.
Conversely, the manufacturing of conventional, gasoline-powered motorcycles will persist, but these units will primarily target overseas sales. The minister identified key export destinations as markets within Africa, the Middle East, and South America.
Kartasasmita underscored that this strategic policy aims to ensure the long-term viability of the industry while compelling businesses to adapt to the global shift towards electrification. He stated the necessity for Indonesia to develop its own electric motorcycle manufacturing capabilities, citing the successful growth seen in China as a model.
This national initiative also aligns with a directive from President Prabowo Subianto, who has expressed a vision for all future vehicles to be electric. This move supports the broader objective of reducing Indonesia’s reliance on fossil fuels.
Regarding the provision of incentives for electric motorcycle purchases, the minister confirmed that discussions are ongoing with the Ministry of Finance. Specific details concerning these potential incentives are still under review and have not yet been finalized.
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