Cikarang, West Java. Indonesia on Thursday launched its national electric motorcycle initiative, known as Molinas, offering easier financing as the government seeks to accelerate the transition away from gasoline-powered motorcycles.

President Prabowo Subianto said buyers of Molinas motorcycles would be offered low-interest installment plans with no down payment, while electric motorcycles could cut operating costs by about 50% compared with gasoline-powered models.

"In major cities around the world, there are already carbon taxes and restrictions on gasoline-powered motorcycles. If people still choose gasoline motorcycles later, they will have to accept the consequences," Prabowo said in a televised address from the launch site in Cikarang, West Java.

Electric motorcycles have so far accounted for only about 2% of Indonesia's motorcycle sales over the past five years, according to a Datasatu report, underscoring the challenge facing the government's electrification drive.

The Molinas initiative will initially use the Cikarang manufacturing facilities of Ilectra Motor Group, the company behind the ALVA electric motorcycle brand, which has produced about 20,000 units.

Investment Minister Rosan Roeslani said the program was designed to rely heavily on domestic resources, including nickel-based batteries produced through Indonesia's mineral downstreaming industry.

He said Indonesia holds about 46% of global nickel reserves, giving the country a major advantage in developing an integrated electric vehicle supply chain.

Indonesia already has the industrial capability to process nickel into key EV components, including battery cells and battery packs, Rosan said.

"If we look at it, all the ingredients and the recipe needed to produce a national electric motorcycle are available here in Indonesia," he said at the same event.

Rosan said Indonesia, one of the world's largest motorcycle markets, currently has around 140 million motorcycles on its roads, creating significant potential for domestic electric motorcycle adoption.

He described Molinas as a collaboration between the government, state-owned enterprises and private companies aimed at strengthening Indonesia's industrial and economic self-reliance.

Rosan also announced an early commercial commitment from businessman James Riady, who he said had pledged to purchase 20,000 Molinas motorcycles.

"Mr. James Riady of Lippo has committed to purchasing 20,000 of these electric motorcycles, Mr. President. Thank you, Mr. James Riady," Rosan said.

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