Indonesian Political, Business & Finance News

Indonesia Possesses Manufacturing Capability for Molinas, Says Len Industri CEO

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
Indonesia Possesses Manufacturing Capability for Molinas, Says Len Industri CEO
Image: MEDIA_INDONESIA

The success of electric vehicles is determined not only by the ability to produce vehicles but also by the interconnectedness of quality, safety, energy, financing, maintenance, spare parts, and user services.

This was stated by the President Director of PT Len Industri (Persero), Joga Dharma Setiawan, in Jakarta on Friday (14/8). “Indonesia has manufacturing, technology, energy, financing, and a growing market. The challenge is to ensure all these capabilities work as one ecosystem with clear role distribution, standards, governance, and proof targets,” Joga said.

Joga explained that the development of Molinas does not rely on a single product or manufacturer. Molinas connects technological capabilities, manufacturing, components, batteries, financing, energy infrastructure, distribution, after-sales service, and user needs in an ecosystem developed in stages.

Alva and Gesits are strategic partners in the initial stage as part of the strategy to accelerate product and ecosystem development. Their involvement is not a final composition. Molinas remains open to collaboration with other manufacturers and industry players who meet the technical, quality, safety, industrial readiness, and governance requirements within the programme framework.

According to Joga, Len serves as the technical integration lead in the development of Molinas, an open collaboration platform for electric motorcycle manufacturers and ecosystem players. In the inter-party framework, Len functions as the lead integrator on technical aspects.

“In the division of roles between parties, the government provides policy direction, Danantara orchestrates ecosystem collaboration, while Len coordinates technical integration, standardisation, and partner readiness data alignment,” Joga said.

The development of Molinas does not negate the industrial partnerships Len has previously built. The experience of developing the Sprint with various industry partners serves as a lesson and strengthens Len’s capabilities in the electric vehicle sector.

Previously, Danantara CEO Rosan Perkasa stated that banks and financial institutions under Danantara would support Molinas by providing funding with lower interest rates.

“We plan to reduce or eliminate the 10% down payment. This step aims to increase public interest. We have the ability to accelerate the production of national electric motorcycles,” Rosan said.

Rosan, who also serves as Minister of Investment and Downstreaming/Head of BKPM, assessed that the potential market for electric motorcycles in Indonesia reaches US$170 billion, or approximately Rp3,036 trillion (at an exchange rate of 17,800).

Based on this potential, he noted that ten national companies meet the domestic component level (TKDN) criteria set by the Ministry of Industry. “Not only to become champions in Indonesia but also in the region and even the world,” Rosan asserted.

President Prabowo Subianto inaugurated Molinas and its supporting ecosystem at the production facility of PT Ilectra Motor Group (Alva) in Cikarang, West Java, on Thursday (13/8).

The President praised the courage of private entrepreneurs in taking the risk to produce electric motorcycles amidst competition from Chinese, Japanese, and South Korean electric motorcycles. According to Prabowo, the boldness of entrepreneurs in producing electric motorcycles is part of the national interest, particularly to reduce dependence on fuel imports.

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