‘Molinas’ marks new chapter in Indonesia’s EV industrialization

For decades, the familiar roar of internal combustion engines has defined daily transportation across Indonesia.

With annual motorcycle sales consistently hovering between 6 million and 7 million units, two-wheelers serve as the undisputed backbone of personal mobility throughout the archipelago.

Yet, despite this massive domestic market, electric motorcycles have historically struggled to secure a meaningful foothold, recording a modest 60,000 to 70,000 units sold annually—a mere 1 percent of overall national sales.

This pronounced disparity between conventional and electric two-wheeler adoption presented both a policy challenge and an unprecedented economic opportunity.

Recognizing that the vast gap opened a strategic gateway to pioneer domestic electric vehicle (EV) manufacturing, the Indonesian government launched the National Electric Motorcycle (Motor Listrik Nasional or Molinas) initiative to build a comprehensive, end-to-end industrial ecosystem.

Officially introduced on August 13, 2026, at PT Ilectra Motor Group’s (ALVA) production facility in Cikarang, West Java, Molinas signals a fundamental transition in national economic strategy.

Rather than relying on imported completely built-up units or basic assembly operations, the government’s roadmap targets comprehensive domestic capacity spanning component manufacturing, battery technology, charging networks, commercial financing, distribution and after-sales support.

Indonesia’s foray into two-wheeler electrification rests on a solid manufacturing foundation.

Industry Ministry data shows the nation already hosts 69 battery-based electric vehicle manufacturers specializing in two- and three-wheeled models—boasting a combined annual capacity of 2.511 million units and over Rp1.2 trillion (approximately US$74.5 million) in capital investment.

To translate this capacity into mass-market adoption, the government is actively expanding domestic manufacturer involvement, with at least 10 local companies already meeting strict Domestic Component Level (TKDN) requirements to participate directly in the development of Molinas.

At the enterprise level, state planners are encouraging companies like the corporate group overseeing, ALVA—which currently produces roughly 20,000 units annually—to scale output tenfold to 200,000 units per year.

This expansion forms a vital stepping stone toward achieving a broader target of 2 million national electric motorcycles.

Transitioning from small-scale manufacturing to mass production brings several key economic advantages.

First, component suppliers get the chance to serve a steady, high-volume domestic market, giving them the stability needed to grow their operations.

Second, producing goods on a larger scale lowers per-unit manufacturing costs, allowing equipment makers to pass savings directly to everyday buyers through lower retail prices.

Finally, this growth helps smaller local businesses connect with larger supply networks, enabling micro, small, and medium enterprises (MSMEs) to join the broader automotive chain as supporting suppliers.