How Prabowo Plans to Boost Electric Motorcycle Sales in Indonesia

President Prabowo Subianto has announced a series of initiatives aimed at increasing electric motorcycle sales in Indonesia, including reducing financing costs, eliminating down payments, and implementing a trade-in program for gasoline-powered motorcycles. Addressing the launch of the domestically produced National Electric Motorcycle (Molinas) at PT Ilectra Motor Group's facility in Cikarang, West Java, Prabowo emphasized that these measures would make electric motorcycles more accessible to consumers.

Prabowo proposed lowering installment interest rates and removing down-payment requirements for electric motorcycle purchases. He also suggested a trade-in program for those who currently own gasoline-powered motorcycles, with the potential to offer trade-in incentives. The objective of these measures is to encourage more people to transition to electric motorcycles while simultaneously reducing Indonesia's reliance on imported fuel.

The president highlighted the potential cost savings of electric motorcycles, estimating a 50 percent reduction in transportation costs compared to gasoline-powered alternatives, with daily savings potentially reaching 70 percent. Prabowo also mentioned the possibility of introducing carbon-tax schemes in major cities to further incentivize the shift towards electric vehicles, citing Beijing's restrictions on gasoline-powered motorcycles as an example.

Indonesia is actively developing its electric vehicle ecosystem, with a new electric vehicle plant in Subang, West Java, set to start production in 2028. Prabowo commended private-sector companies for investing in electric motorcycle production despite facing competition from Chinese, Japanese, and South Korean manufacturers. He emphasized that expanding domestic electric motorcycle production is part of a broader strategy to strengthen Indonesia's industrial base and decrease its dependence on imported fuel.