Local Content Requirement for Electric Motorcycles in Indonesia to Rise to 60% Next Year

The domestic component level (TKDN) for the electric motorcycle industry in Indonesia continues to increase. Industry players are even targeting a higher use of local components in the coming years. Chairman of the Indonesian Electric Motorcycle Industry Association (Aismoli), Budi Setiyadi, said many association members have now met the minimum TKDN threshold set by the government. “Our TKDN is 40%. Many in Aismoli have already achieved that. Next year it will be 60%,” Budi told CNBC Indonesia. He admitted he does not yet have detailed data on the achievements of each manufacturer. So far, industry development has been monitored more through sales data compiled by the government. This is because the association cannot force all companies to submit data regularly. Therefore, Aismoli usually uses government data as a reference for market development. “I don’t have the data. I usually ask the Ministry of Transportation, how many have been sold now, how many thousands,” he said. Budi assessed that the increase in TKDN is one indicator that the national electric motorcycle industry is starting to develop. Strengthening local components is also considered important to bolster the competitiveness of the domestic industry. “If the TKDN continues to increase, it will certainly be better for the national industry because domestic production capabilities will also develop,” he said.