The Future of EVs: Balancing Conversion and New Manufacturing

JAKARTA, KOMPAS.com – The government’s policy direction in accelerating the uptake of electric vehicles in Indonesia is once again in the spotlight. This time, the focus is on the discourse surrounding a shift in incentives that leans more towards the electric motorcycle conversion programme rather than the purchase of new units. The conversion programme is considered to lack a foundation as strong as the new electric motorcycle manufacturing industry, which is currently gaining momentum. Chief Marketing Officer of Alva, Putu Swaditya Yudha, stated that Alva respects every government policy as part of the national strategy to speed up electric vehicle adoption in Indonesia. “We see that every approach, including the conversion programme and new electric vehicles, has its respective role in building a stronger ecosystem,” said Adit, when contacted by Kompas.com recently. “In this context, the development of new electric vehicles also contributes to the growth of the domestic manufacturing industry, strengthening product safety standards, and building a long-term ecosystem, including supply chains and integrated after-sales services,” Adit added. Adit further noted that viewing the balance between these various approaches could be an important factor in driving sustainable industry growth. “From Alva’s perspective, we continue to focus on strengthening business fundamentals through product innovation, ecosystem expansion, and improving accessibility for consumers. This is done, among other things, through partnerships with various financing partners to offer more flexible ownership schemes, including the Bebas Pas programme for N3 Next Gen with a subscription fee starting from Rp 125,000 per month,” he said. Automotive expert from the Bandung Institute of Technology (ITB), Yannes Martinus Pasaribu, stated that the risks are significant if incentives are almost entirely directed towards electric motorcycle conversions. According to him, there is a market balance that must be maintained so that this future automotive industry does not falter midway. “Because the new electric motorcycle market, which is still fragile, could lose growth momentum before it achieves a healthy economic scale. The impact is not only on unit sales,” said Yannes. Yannes emphasised that currently, new electric motorcycle producers are striving to build consumer trust and strengthen production bases. If the government’s attention shifts too drastically to conversions, it is feared that investments already entering the manufacturing line will be hampered, ultimately affecting manufacturers’ intentions to localise components. For him, conversion is not just about replacing the engine with a battery and dynamo, but also about the sustainability of after-sales services and long-term security for users. “But also on the manufacturing ecosystem, local component investments, and industry player confidence. Even more dangerous, if certified workshops, competent human resources, quality assurance, parts availability, warranties, prices for converted used motorcycles, and leasing support have not been radically improved,” said Yannes. Without strict standards, converted motorcycles are feared to encounter technical issues in the future. Problems such as battery degradation, unstable electrical systems, and plummeting resale values could become deterrents that make potential consumers reluctant to consider this programme.