Molinas Projected to Cut Fuel Subsidies by Rp82.2 Trillion
The National Electric Motorcycle Programme (Molinas) is projected to become a new backbone of Indonesia’s green economy, with potential fuel subsidy savings reaching Rp82.2 trillion by 2037. This figure is based on the assumption of 11 million electric motorcycles operating across the country during that period.
Assistant Deputy for Industrial Development at the Coordinating Ministry for Economic Affairs, Atong Soekirman, stated that Molinas is not merely a mode of transport but a strategy to strengthen the trade balance. Through oil import substitution, the programme is estimated to reduce foreign energy dependence by up to Rp45 trillion.
“Fuel subsidy savings, assuming 11 million units are operating in 2037, will reach Rp82.2 trillion,” Atong Soekirman said, as reported by Antara on Thursday (20/8).
Beyond state budget efficiency, the Molinas ecosystem is expected to deliver a significant multiplier effect. Throughout 2026–2031, the economic value generated is predicted to reach Rp150 trillion. The sector is also targeted to absorb 215,000 workers, spanning manufacturing, battery production, and charging infrastructure.
The government has set an ambitious target of 100,000 units of annual production capacity. The Domestic Component Level (TKDN), currently at 40%, will be pushed to reach 60% to ensure national industrial self-reliance.
The programme, initiated by BPI Danantara together with PT Len Industri, was inaugurated by President Prabowo Subianto on 13 August 2026 at the production facility of PT Ilectra Motor Group (ALVA) in Cikarang. The President emphasised that Molinas is a strategic step to build a comprehensive electric vehicle ecosystem, encompassing industrial aspects, financing, and market absorption.
At the launch, the President was accompanied by several senior officials, including Coordinating Minister for Economic Affairs Airlangga Hartarto and Danantara CEO Rosan Perkasa Roeslani, signalling full cross-sectoral support for the national energy transformation.