Jakarta. Indonesia’s plan to gradually phase out gasoline-powered motorcycles is drawing support from industry players, though challenges around infrastructure, investment, and consumer readiness remain.

The proposal, announced last week by Industry Minister Agus Gumiwang Kartasasmita, prioritizes electric motorcycles for the domestic market while allowing conventional models to serve exports. The approach aims to accelerate electrification without disrupting Indonesia’s role as a major global motorcycle producer.

ALVA, one of the country’s leading electric motorcycle makers, welcomed the policy direction, calling it a strategic step toward building a sustainable electric vehicle ecosystem.

“We see this as part of a broader effort to strengthen domestic adoption and accelerate the transition to sustainable mobility,” CEO Purbaja Pantja told The Jakarta Globe.

As one of the world’s largest motorcycle markets, Indonesia offers significant domestic potential. At the same time, ALVA said export opportunities remain open, with its CERVO model already securing European homologation certification.

From a production standpoint, ALVA said it is ready to scale. Its smart manufacturing facility in Cikarang, certified under the Industry 4.0 (INDI 4.0) program, has a capacity of up to 100,000 units per year. 

Still, executives say infrastructure will be decisive in driving adoption. ALVA has built more than 220 charging connectors across 110 locations in Java, Bali and Kalimantan, alongside over 130 after-sales service points in 39 cities.

"Consumers today are increasingly rational. They consider charging convenience, after-sales service, and total cost of ownership, as well as safety and comfort,” Purbaja said.

Industry-wide investment needs remain difficult to quantify, as they depend on how quickly adoption targets are set and supporting infrastructure is built. 

“Consistent incentives and regulatory certainty will be key catalysts to unlocking larger investments across the industry,” Purbaja said.

Demand for electric motorcycles is rising but remains far below that of conventional models. To close the gap, ALVA pointed to three key pillars: competitive and affordable products, reliable infrastructure, and sustained public education.

The company offers flexible ownership schemes, including battery leasing, with entry-level prices starting at around Rp 15.5 million.

“With strong policy momentum and improving industry readiness, we believe the transition toward electric vehicle dominance is only a matter of time,” Purbaja said.

Data from the Transportation Ministry’s vehicle type approval system show sales fell 28.6% in 2025 to 55,059 units, down from 77,078 units in 2024. The decline has been partly attributed to uncertainty surrounding government subsidies.

Chairman of the Indonesian Electric Motorcycle Industry Association (AISMOLI), Budi Setiyadi, said the group backs government efforts to boost domestic electric vehicle (EV) adoption and increase local absorption of production.

“In principle, we strongly support the government’s push to reinforce the domestic EV market. A strong local market is essential to building a sustainable industry—from scaling up production and advancing technology to creating jobs,” Budi told The Jakarta Globe.

However, he cautioned that industry dynamics require a more flexible approach. Sales strategies, whether for domestic or export markets, will depend on factors such as consumer demand, purchasing power, infrastructure readiness, and the global competitiveness of Indonesian products.

“A balanced approach would be more optimal, where the domestic market is strengthened while export opportunities remain open as part of long-term industry growth,” he concluded.

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