Herman, Jakarta – The government is expecting two million electric motorcycles to roll off the local production line by 2025 – 20 percent of the total number of motorcycle production by that time, for both local and export markets, Industry Minister Agus Gumiwang Kartasasmita said on Friday.
Indonesia already has several electric motorcycle manufacturers, including Gesits Technologies Indo. But their production capacity is still negligible compared to what internal combustion engine manufacturers like Honda, Yamaha, Suzuki, Kawasaki are capable of.
On average, these behemoths churn out 6.5 million motorcycles every year.
Agus, however, said the government intends to turn things around in favor of electric motorcycle, in line with President Joko 'Jokowi' Widodo's ambition to turn Indonesia into a center of electric vehicle production in Southeast Asia by 2030.
"The government expects motorcycle production to continue to grow to 10 million units per year by 2025. One million of those will be set aside for export. We also want around 20 percent of that total national production, or 2 million units, to be electric motorcycles," Agus said.
President Jokowi issued a presidential regulation early this year to try to accelerate the development of battery-based motorized electric vehicles for road transportation.
Under the regulation, electric cars and motorcycles will be eligible for cuts in the luxury goods tax (PPnBM) and title transfer fees.
The regulation also mandated local producers to use at least 40 percent local components in 2019-2023, 60 percent in 2024-2025 and 80 percent from 2026 onward. The government believes local manufacturers would be able to meet these targets easily.
"Since 2010, motorcycle production has increased to an average of 6.5 million units per year. Many local component makers have also expanded in line with that increase. Based on data, domestic components make up 90 percent of motorcycles being produced at the moment," Agus said.
He said motorcycle production had exceeded 6.2 million units between January and October this year. Around 5.5 million units went to the domestic market, and the rest were exported to the Philippines, Thailand, Bangladesh, Japan, Western Europe and Latin America.