Indonesia Eyes USD 170 Billion Electric Motorcycle Market Potential

RRI.CO.ID, Jakarta - Indonesia is considered to have significant potential to expand the use of electric motorcycles. Minister of Investment and Downstreaming, Rosan P. Roeslani, said this potential is reflected in the country’s large number of two‑wheeled vehicles.

“We also estimate the market size to be approximately USD 170 billion,” Minister Rosan said during the launch and inauguration of the National Electric Motorcycle (MOLINAS) and its supporting ecosystem in Cikarang, West Java, on Thursday, August 13, 2026, as quoted by Antara.

Currently, Indonesia has around 140 million motorcycles. Annual sales of new motorcycles range from 6 to 7 million units.

However, adoption of electric motorcycles remains relatively low. Annual sales are only around 60,000 to 70,000 units.

“So, the share of electric motorcycles is only one percent. If we look at it, the future potential - the upside --could be exponential,” Minister Rosan said.

The government also sees an opportunity to strengthen the domestic electric motorcycle industry.

Minister Rosan noted that around 10 national companies have met the Domestic Component Level (TKDN) criteria set by the Ministry of Industry.

The development of this industry also involves PT Len Industri. This collaboration aims to ensure that domestic electric motorcycle products meet international standards.

“We aim not only to be champions in Indonesia, but also champions in the region, and indeed, we must become champions in the world,” Rosan said.

Earlier, President Prabowo Subianto officially launched MOLINAS and its supporting ecosystem at the production facility of PT Ilectra Motor Group (ALVA) in Cikarang, Bekasi Regency, West Java.

President Prabowo appreciated the boldness of private‑sector entrepreneurs investing in this sector. He views this step as part of a collective effort to build national economic strength -- a concept he often refers to as “Indonesia Incorporated.”

The development of electric motorcycles is also considered strategically important. President Prabowo emphasized that increasing the production and use of electric vehicles can help reduce dependence on imported petroleum products. ***