Indonesia Sets 100,000-Unit Annual National Electric Motorcycle Target

Indonesia Advances Plan for National Electric Motorcycle Production

Tempatdonasi.com – Indonesia is moving ahead with an ambitious effort to establish large-scale domestic production of electric motorcycles, setting a target of 100,000 units each year. The initiative is intended to strengthen the country’s role in the electric-vehicle supply chain while supporting a gradual shift away from motorcycles powered by fossil fuels.

The project has been assigned to PT LEN Industri (Persero), with planned investment totaling Rp2.6 trillion. The production capacity has been developed through cooperation involving multiple industrial participants, reflecting a broader approach that extends beyond assembling finished vehicles.

Setia Diarta, Director General of Metal, Machinery, Transportation Equipment, and Electronics Industry at the Ministry of Industry, outlined the plan during a meeting with the House of Representatives’ Commission VII on Wednesday, September 9, 2026.

“So, there is a manufacturing process carried out here, and several industries are involved,” said Setia.

Local Content Targets Shape the Project

A central part of the national electric motorcycle program is the Domestic Component Level, known locally as TKDN. The government has set a staged roadmap for battery-powered electric vehicles, requiring at least 40 percent domestic content in 2026.

The requirement is scheduled to rise to 60 percent during 2027 through 2029. By 2030, battery-electric vehicles must reach a minimum local-content level of 80 percent. These targets are designed to ensure that the expansion of Indonesia’s electric vehicle market also creates more production activity within the country.

For consumers, a local-content policy can affect much more than the badge displayed on a motorcycle. It can involve where components are made, where investments are placed, which businesses participate in the supply chain, and how much of the manufacturing process occurs domestically.

Setia said the TKDN framework is meant to guide investment so Indonesia does not remain solely a destination for electric vehicle sales. The policy is intended to support the country’s development as a producer, including by raising local content and encouraging battery downstreaming.

“This will be an added value for the domestic industry,” he said.

Beyond Branding and Assembly

The government’s electric motorcycle plan was publicly introduced by President Prabowo on July 17, 2026. Four days later, State Secretary Minister Prasetyo Hadi described the initiative as part of a wider push to cut reliance on oil derived from fossil fuels. He also said the motorcycles included in the program would be made in Indonesia.

The distinction between a domestically branded motorcycle and a genuinely national electric motorcycle is significant for the industry. Prabowo Kartoleksono, head of the Development and Research Division at the Indonesian Electric Vehicle Industry Association, said national status should reflect the actual value created for Indonesia rather than branding alone.

That test includes the full chain behind a vehicle: manufacturing activity, investment, industrial capability, participation by Indonesian businesses, compliance with TKDN requirements, and use of domestic suppliers. In this view, the success of the project will depend not only on reaching the 100,000-unit annual figure, but also on how deeply local companies are integrated into its development.

“In addition, it must be able to create jobs, drive investment, improve national manufacturing capability, and strengthen the Indonesian electric motorcycle ecosystem,” Prabowo said to Tempo on Thursday, July 23, 2026.

What the Production Goal Could Mean

The 100,000-unit target gives the national program a measurable manufacturing objective. Reaching that level would require coordination across vehicle production, battery-related activity, component sourcing, and supporting industrial operations. The involvement of several industries, as described by Setia, signals that the project is being framed as an ecosystem-building effort rather than a single-factory undertaking.

Electric motorcycles are especially relevant in a country where two-wheeled transportation is a familiar part of daily mobility. The government’s emphasis on domestic manufacturing suggests that the policy goal is not limited to introducing electric vehicles to the market. It is also tied to building industrial value within Indonesia as demand for battery-powered transport grows.

The phased TKDN schedule creates a clear direction for companies participating in the sector. In the near term, manufacturers must meet the 40 percent threshold. Over time, the increase toward 60 percent and eventually 80 percent will place greater importance on domestic capability in components, supply chains, and industrial investment.

Indonesia’s national electric motorcycle program therefore combines production volume, local-content rules, and energy-transition objectives. Its progress will be measured not merely by the number of motorcycles produced, but by whether the project generates the jobs, investment, manufacturing strength, and domestic electric-motorcycle ecosystem envisioned by policymakers and industry representatives.