Indonesian Political, Business & Finance News

Government to direct conventional motorcycles for export, domestic market to use electric motorcycles

| Source: ANTARA_ID Translated from Indonesian | Regulation
Government to direct conventional motorcycles for export, domestic market to use electric motorcycles
Image: ANTARA_ID

Jakarta (ANTARA) - The government is directing the production and marketing of national motorcycles by focusing electric motorcycles for domestic needs, while fuel-based or conventional motorcycles are aimed at the export market.

Industry Minister Agus Gumiwang Kartasasmita, met in Jakarta on Thursday, stated that the government is currently preparing regulations to support the acceleration of electric vehicle adoption, particularly motorcycles.

“The government is preparing regulations where electric motorcycle manufacturers already in Indonesia will soon prepare sufficient production of electric motorcycles, because we want all electric motorcycle sales from our factories for the domestic market to be through electric motorcycles,” he said.

Meanwhile, production of conventional-based motorcycles will not be stopped, but will be directed to meet export market needs, especially to non-traditional regions.

“Meanwhile, motorcycles that are still conventional-based can continue to be produced, and we will direct them for export products, either to other countries, especially in Africa, the Middle East, or South America,” he said.

Agus emphasised that this policy not only maintains the industry’s sustainability but also encourages business actors to adapt to technological changes towards electrification.

“So, there is no need to stop production of conventional-based motorcycles because we will direct them for export, but capacity building for producing electric motorcycles must already begin. Because we are making a roadmap that all electric motorcycles circulating in Indonesia used by consumers will all be electric-based. China has succeeded; China has all electric-based motorcycles,” he said.

He also conveyed that the President’s directives emphasise that all future vehicles will be electric-based, in line with the increasing importance of efforts to reduce dependence on fossil fuels.

“Yes, because now the importance of that is increasingly evident, to reduce our dependence on fossil fuels. So there is no other choice; we must convert to electric,” he said.

Furthermore, regarding incentives for electric motorcycles, his side has already communicated with the Ministry of Finance, and the amount of incentives is still under discussion.

“It is still being discussed,” he said.

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