Business Leader Predicts the Fate of Electric Motorcycles in Indonesia
Competition in Indonesia’s electric motorcycle industry is heating up with the influx of new players. Amid price pressures and potential thinning margins by 2026, industry players still see promising growth opportunities.
Alva CEO Purbaja Pantja considers the tight competition a positive signal for the future of the two-wheeled electric vehicle sector in the country.
“If we talk about competition, it’s true that it’s already very tight, and I see it as something optimistic that the electric motorcycle business players also have the same enthusiasm, meaning that these players feel this is a good industry to pursue. With that, we can be optimistic together that this industry will continue to develop going forward,” he stated in a written remark (12/4/2026).
On the other hand, the readiness of the domestic industry is key to facing market dynamics. Strengthening local content up to the supply chain is seen as determining the resilience of business players amid cost pressures.
“We will continue to support the national industry here. Our TKDN is now around 40% for all our products. And we also know that from the government side, there are plans to increase TKDN to 60%, right? So all the steps we take are aimed at achieving the targets that the government has set,” he said.
These efforts are also directed towards strengthening the overall electric vehicle ecosystem, from upstream to downstream, which is expected to support long-term industry growth.
Amid price competition, another challenge comes from consumer perceptions, particularly regarding resale value and the durability of electric motorcycles. Alva positions after-sales service as one of the main strategies to build market trust.
“How we ensure that our after-sales service continues to run well. Also matters related to our commitment to ensure that the necessary parts, the required spare parts, are available over the long term,” he explained.
In addition, flexibility in services for users is continuously developed to increase comfort and consumer confidence in the long term.
As government incentives for electric motorcycle purchases end, concerns about purchasing power have arisen. However, Alva sees the foundation of market demand now stronger compared to the initial adoption phase.
“According to us, that time has passed in the sense that market education regarding electrification has already occurred. So if we talk about future demand, we feel confident that the demand is already formed and will continue to grow going forward,” he revealed.