Indonesia Accelerates National Electric Vehicle Ecosystem

RRI.CO.ID, Jakarta - The government speeds up the development of the battery-based electric motor vehicle (KBLBB) ecosystem as part of the national industrial transformation toward a more self-reliant, competitive, and sustainable industrial structure. The strategic effort was further strengthened with the launch of the National Electric Motorcycle (MoLiNas) and its supporting ecosystem by President Prabowo Subianto at ALVA’s production facility in Cikarang, Bekasi Regency, West Java, on Thursday, August 13, 2026.

Industry Minister, Agus Gumiwang Kartasasmita, who attended the launch, said the introduction of MoLiNas marks an important moment to strengthen the national industry’s technological capabilities, deepen the industrial structure, and increase the use of domestically produced components.

“MoLiNas must become a momentum to build a stronger national electric vehicle ecosystem from upstream to downstream. Indonesia must not only become a market for electric vehicles, but also a production and technology development base for electric vehicles with global competitiveness,” the Industry Minister, said in Bekasi on Thursday, August 13, 2026.

According to him, this development direction is in line with President Prabowo’s call to strengthen national self-reliance through mastery of science and technology and the development of domestic industrial capabilities. The synergy between the government, state-owned enterprises, private sector, research institutions, academia, and the financial sector in developing MoLiNas also reflects the spirit of Indonesia Incorporated, in which all national strengths work together to build Indonesia’s industrial and economic capabilities.

During the launch, President Prabowo first inspected the electric motorcycle production process at ALVA’s facility. He then visited an electric vehicle ecosystem exhibition and signed a plaque commemorating ALVA’s production of 20,000 units.

He expressed his appreciation for the collaboration among various stakeholders in developing MoLiNas, including private companies, state-owned enterprises, businesses, and academia involved in research and development.

“Today is a very important day. I would like to express my thanks and appreciation to all stakeholders—from private companies, entrepreneurs and businesspeople, to state-owned enterprises and academia, which produces experts who form the core of research and development,” the President said.

The President viewed the collaboration as an example of Indonesia Incorporated in practice. In the modern era, he said, a nation’s success is largely determined by its ability to master science and technology and harness them to support national development and progress.

The Industry Minister said Indonesia has a strong foundation for building an integrated electric vehicle industry. Currently, there are 69 KBLBB manufacturers for two- and three-wheeled vehicles, with a combined production capacity of 2.511 million units per year and total investment of approximately Rp1.2 trillion.

Overall, Indonesia’s electric vehicle assembly industry has also expanded rapidly. In addition to the 69 two- and three-wheeled KBLBB companies, there are 14 electric four-wheeled vehicle manufacturers with a production capacity of 409,860 units per year, as well as 10 electric commercial vehicle manufacturers with a capacity of 7,500 units per year. Total investment in the electric vehicle assembly industry has reached approximately Rp30.468 trillion.

“This substantial production capacity shows that Indonesia already has a strong manufacturing foundation. Our next challenge is to ensure sustainable market growth, increase production capacity utilization, and, at the same time, deepen the industrial structure through greater use of domestically manufactured components,” Agus said.

The growth of Indonesia’s electric vehicle ecosystem is also reflected in its expanding vehicle population. Based on data compiled by the Ministry of Industry, the total number of electric vehicles in Indonesia had reached 468,231 units as of around April 2026. Of this total, two-wheeled electric vehicles represented the largest group at 242,909 units, followed by 223,100 electric passenger cars.

The national KBLBB population recorded exponential growth, with a compound annual growth rate (CAGR) of more than 150 percent between 2020 and 2025. Two- and four-wheeled vehicles were the main drivers of this growth.

Agus said the development indicates growing public acceptance of electric vehicles. However, rising demand must be accompanied by stronger domestic production capabilities and supply chains.