Indonesian Political, Business & Finance News

ALVA CEO Speaks Out on National Electric Motorcycle Project

| Source: CNBC Translated from Indonesian | Industry
ALVA CEO Speaks Out on National Electric Motorcycle Project
Image: CNBC

The discourse on developing a national electric motorcycle continues to surface alongside the government’s push to strengthen the domestic electric vehicle industry. However, behind this significant potential, industry players still face major challenges, particularly in the supply chain for strategic components such as batteries. ALVA CEO Purbaja Pantja stated that to date, ALVA has fulfilled the Domestic Component Level (TKDN) requirements. Nevertheless, he assessed that the definition of a national motorcycle still lacks clear boundaries, and the industry has not received clear communication. “The TKDN is clear, all our motorcycles are already above 40%, in accordance with existing regulations,” Pantja said during a media discussion on Monday (3/8/2026). The biggest challenge currently is no longer just increasing local content, but building a component industry that is truly capable of supplying the needs of electric vehicles in Indonesia. This requires time as the industrial ecosystem is still in a developmental stage. He cited the example of the battery industry, which is beginning to emerge in Indonesia. However, not all manufacturers have specifications suitable for the needs of electric motorcycles, so producers still have to select based on quality, production capacity, and their product requirements. “The challenge is certainly the availability of the product. Now there are more and more battery companies in Indonesia, but we haven’t yet dissected whether they are for motorcycles or for cars. Some can make them for cars but cannot necessarily make them for motorcycles, and vice versa,” he said. ALVA also sees that localisation does not only depend on the readiness of the component industry but is also influenced by the size of market demand. The higher the sales of electric motorcycles, the greater the incentive for component manufacturers to build production facilities domestically. “This is a cycle. The more electric motorcycles on the road and the larger the sales, it should also provide an attraction for the component industry to build factories in Indonesia. I think the development has been positive and we hope this will continue so that the electric motorcycle manufacturing ecosystem becomes more complete,” Pantja said.

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