Small and Medium Industries Targeted to Enter National Electric Motorcycle Ecosystem, Here's Minister Agus's Strategy
The Ministry of Industry is targeting the involvement of small and medium industries (IKM) in the battery-based electric motor vehicle ecosystem, particularly the national electric motorcycle (molinas).
Minister of Industry Agus Gumiwang Kartasasmita emphasised that the development of the electric vehicle industry must have a multiplier effect on the national industrial structure, including opening opportunities for IKM to become part of the large industry supply chain.
“Our target is not merely to have more IKM receiving coaching, but also to meet industrial requirements, because IKM must be able to meet qualifications as suppliers, enter the supply chain, and ultimately obtain orders on a sustainable basis,” said the Minister in a statement confirmed in Jakarta on Tuesday, 18 August 2026.
He said that strengthening IKM is not sufficient merely through increasing production capacity, but must be directed so that business actors are able to meet standards and qualifications as industrial suppliers.
These efforts are beginning to show results through the involvement of two IKM fostered by the Ministry of Industry, namely PT Kannindo Metal Industri and PT Multikon Rekatama Industri, which have entered the supporting ecosystem of the national electric motorcycle launched by President Prabowo Subianto on 13 August 2026 in Cikarang, West Java.
The two IKM have been able to produce battery box components and battery brackets for the Alva electric motorcycle under PT Electra Mobilitas Indonesia. This success demonstrates that national small industries have significant opportunities to take on a broader role in the electric vehicle supply chain.
According to the Minister, the Directorate General of Small, Medium, and Miscellaneous Industries (IKMA) runs various development programmes for IKM producing transport equipment components, ranging from identifying potential IKM, improving technological capability and quality, developing prototypes, testing and certification, to integrating IKM into the electric vehicle industry supply chain.
The development of IKM within the electric vehicle ecosystem is carried out using a supplier development approach, namely making the needs of large industries and original equipment manufacturers (OEM) the basis for coaching.
Through this approach, the capabilities of local IKM are mapped and aligned with the component needs of electric vehicles. Potential IKM then undergo supplier readiness assessments to identify various aspects that still need strengthening.