{
    "success": true,
    "data": {
        "id": 1662795,
        "msgid": "the-future-of-evs-balancing-conversion-and-new-manufacturing-1775613275",
        "date": "2026-04-08 08:22:00",
        "title": "The Future of EVs: Balancing Conversion and New Manufacturing",
        "author": "Agung Kurniawan",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Regulation",
        "summary": "The Indonesian government's policy direction to accelerate electric vehicle adoption is under scrutiny, particularly the proposed shift of incentives towards converting existing motorcycles to electric rather than purchasing new units. Industry experts and manufacturers like Alva warn that overemphasising conversion could undermine the nascent new manufacturing sector, potentially stalling investments, local component localisation, and long-term ecosystem development. Maintaining a balance is crucial to ensure sustainable growth, consumer trust, and robust after-sales support in the EV market.",
        "content": "<p>JAKARTA, KOMPAS.com \u2013 The government\u2019s policy direction in\naccelerating the uptake of electric vehicles in Indonesia is once again\nin the spotlight. This time, the focus is on the discourse surrounding a\nshift in incentives that leans more towards the electric motorcycle\nconversion programme rather than the purchase of new units. The\nconversion programme is considered to lack a foundation as strong as the\nnew electric motorcycle manufacturing industry, which is currently\ngaining momentum. Chief Marketing Officer of Alva, Putu Swaditya Yudha,\nstated that Alva respects every government policy as part of the\nnational strategy to speed up electric vehicle adoption in Indonesia.\n\u201cWe see that every approach, including the conversion programme and new\nelectric vehicles, has its respective role in building a stronger\necosystem,\u201d said Adit, when contacted by Kompas.com recently. \u201cIn this\ncontext, the development of new electric vehicles also contributes to\nthe growth of the domestic manufacturing industry, strengthening product\nsafety standards, and building a long-term ecosystem, including supply\nchains and integrated after-sales services,\u201d Adit added. Adit further\nnoted that viewing the balance between these various approaches could be\nan important factor in driving sustainable industry growth. \u201cFrom Alva\u2019s\nperspective, we continue to focus on strengthening business fundamentals\nthrough product innovation, ecosystem expansion, and improving\naccessibility for consumers. This is done, among other things, through\npartnerships with various financing partners to offer more flexible\nownership schemes, including the Bebas Pas programme for N3 Next Gen\nwith a subscription fee starting from Rp 125,000 per month,\u201d he said.\nAutomotive expert from the Bandung Institute of Technology (ITB), Yannes\nMartinus Pasaribu, stated that the risks are significant if incentives\nare almost entirely directed towards electric motorcycle conversions.\nAccording to him, there is a market balance that must be maintained so\nthat this future automotive industry does not falter midway. \u201cBecause\nthe new electric motorcycle market, which is still fragile, could lose\ngrowth momentum before it achieves a healthy economic scale. The impact\nis not only on unit sales,\u201d said Yannes. Yannes emphasised that\ncurrently, new electric motorcycle producers are striving to build\nconsumer trust and strengthen production bases. If the government\u2019s\nattention shifts too drastically to conversions, it is feared that\ninvestments already entering the manufacturing line will be hampered,\nultimately affecting manufacturers\u2019 intentions to localise components.\nFor him, conversion is not just about replacing the engine with a\nbattery and dynamo, but also about the sustainability of after-sales\nservices and long-term security for users. \u201cBut also on the\nmanufacturing ecosystem, local component investments, and industry\nplayer confidence. Even more dangerous, if certified workshops,\ncompetent human resources, quality assurance, parts availability,\nwarranties, prices for converted used motorcycles, and leasing support\nhave not been radically improved,\u201d said Yannes. Without strict\nstandards, converted motorcycles are feared to encounter technical\nissues in the future. Problems such as battery degradation, unstable\nelectrical systems, and plummeting resale values could become deterrents\nthat make potential consumers reluctant to consider this programme.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/the-future-of-evs-balancing-conversion-and-new-manufacturing-1775613275",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}