Electric Motorcycle Penetration at Just 1 Per Cent, Rosan Sees Explosive Growth Potential for Molinas

CIKARANG - The government sees the National Electric Motorcycle market, or Molinas, as still wide open. Of the approximately 6 million to 7 million motorcycles purchased by the public each year, electric motorcycle sales are said to be only around 60,000 to 70,000 units.

Minister of Investment and Downstreaming/Head of BKPM as well as Head of BPI Danantara Rosan Roeslani said electric motorcycle penetration is still around 1 percent.

“If I may report, there are approximately 140 million motorcycles in Indonesia, with annual purchases of 6 to 7 million motorcycles. But those buying electric motorcycles are only around 60 to 70 thousand, so just 1 percent,” said Rosan at the launch of Molinas in Cikarang, Bekasi, West Java, Thursday, 13 August.

According to Rosan, the low penetration opens up significant room for growth.

“If we look at it, the future potential, the upside, could be exponential,” he said.

Rosan estimated the addressable market size at around 170 billion US dollars.

To accelerate growth, the government is not relying solely on vehicle production.

Danantara is also preparing financing support through banks and financial institutions under its management.

The schemes being prepared include lower interest rates, longer tenors, and the possibility of reducing or even eliminating down payments.

Rosan said the down payment for purchasing an electric motorcycle currently stands at around 10 percent based on banking information.

“We will try to reduce it and even try to eliminate it, so that public interest in buying electric motorcycles can grow quickly,” he said.

He also mentioned that around 10 national companies have met the local content requirements of the Ministry of Industry.

These companies will be involved in developing Molinas together with the government, state-owned enterprises, and other national companies.