Indonesian Political, Business & Finance News

Government Boosts Exports and Domestic Content in Motorcycle Industry

| | Source: KOMPAS Translated from Indonesian | Trade
Government Boosts Exports and Domestic Content in Motorcycle Industry
Image: KOMPAS

JAKARTA, KOMPAS.com – The motorcycle industry in Indonesia continues to show positive growth, supported by increasing production capacity and exports.

The government is encouraging the strengthening of the domestic industry through improvements in the Domestic Component Level (TKDN) and expansion of export markets, so that Indonesian-made products become increasingly competitive on the global stage.

In recent years, the trend in two-wheeled vehicles has not only been dominated by conventional motorcycles but also electric motorcycles, which are increasingly popular among the public.

The government’s push for this industry is serious. The Director General of Metal, Machinery, Transportation Equipment, and Electronics Industry (ILMATE), Setia Diarta, emphasised the importance of strengthening TKDN and applying national standards to enhance the competitiveness of domestic products.

“The government will continue to monitor the growth of the national automotive industry so that it develops in line with policy directions, particularly in increasing TKDN and applying Indonesian National Standards (SNI),” said Setia, quoted from an official statement (14/4/2026).

Meanwhile, the Chairman of Commission VII of the DPR RI, Saleh Partaonan Daulay, stressed that every investment in the manufacturing sector must provide added value to the domestic economy.

“We emphasise the importance of every investment in the manufacturing sector not only being market-oriented but also able to increase domestic added value through the measured and gradual implementation of TKDN,” said Saleh.

Based on AISI data, from January to March 2026, exports of motorcycles in completely built-up (CBU) form reached 159,582 units.

This achievement rose by around 18.4 percent compared to the same period the previous year. This figure shows that global demand for Indonesian-made motorcycles remains stable.

With a combination of efforts to increase TKDN, strengthen exports, and accelerate the adoption of electric motorcycles, the national motorcycle industry is on the right track towards self-reliance and global competitiveness.

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