Indonesia has established four mandatory criteria for its National Electric Motorcycle (MOLINAS) program, marking a key step toward building a domestic electric-vehicle ecosystem and reducing dependence on imported fossil fuels. The framework, announced by the Coordinating Ministry for Economic Affairs, signals the government's commitment to developing local manufacturing capabilities while addressing the country's substantial fuel subsidy burden.
Atong Soekirman, assistant deputy for industrial development at the Coordinating Ministry for Economic Affairs, revealed the requirements during a press briefing here Thursday. The MOLINAS program aims to transform Indonesia's motorcycle market — the world's largest with 145.25 million conventional motorcycles in 2025 — into a leading electric-vehicle market in Southeast Asia.
The most stringent criterion requires all MOLINAS motorcycles to achieve a domestic component level above 60 percent. This covers key components including the powertrain, frame and structure, plastics, and body panels. The rule is designed to ensure that electric motorcycles sold in Indonesia contribute to the national manufacturing base rather than relying entirely on imported parts.
The second criterion mandates that designs and engineering must be developed domestically. This moves beyond simple assembly and requires Indonesian companies to own the intellectual property and technical knowledge behind electric motorcycle development. The government believes this will create a sustainable technology ecosystem that can compete globally.
The third criterion requires MOLINAS motorcycles to use nickel-based batteries, aligning with Indonesia's downstream-processing ambitions for nickel — a mineral in which the country holds substantial reserves. By requiring nickel-based batteries, the government aims to create a downstream supply chain that adds value to Indonesia's natural resources rather than exporting raw materials.
The fourth and final criterion requires motorcycles to be priced affordably to meet domestic market needs. Electric motorcycles have traditionally carried a price premium over their gasoline-powered counterparts, which has been a barrier to widespread adoption in price-sensitive markets. The affordable pricing requirement seeks to make electric two-wheelers accessible to mainstream Indonesian consumers.
Atong previously stated that MOLINAS could save Rp82.2 trillion (US$4.9 billion) in fuel subsidies between 2027 and 2037, assuming 11 million electric motorcycles operate by 2037. The program is primarily aimed at building domestic capabilities in design, engineering, manufacturing, technology, and supply chains.
Indonesia had 145.25 million conventional motorcycles in 2025, while electric motorcycles totaled just 229,554 units as of December 2025, leaving substantial room for industry growth. Demand for electric motorcycles is projected to reach 1.5 million units by 2028, Atong said, representing a massive market opportunity if the criteria successfully stimulate local production.
The related news of Danantara backing financing for Indonesia's national e-motorcycles further strengthens the program's financial framework, potentially making it easier for manufacturers to meet the domestic component and pricing requirements.
The four criteria present both challenges and opportunities for the Indonesian motorcycle industry. Major manufacturers will need to restructure their supply chains to meet the 60 percent domestic component requirement, which may increase short-term costs but create long-term resilience. Local engineering teams will need to develop expertise in electric powertrain design, battery management, and electronic controls.
For new entrants, the criteria level the playing field by requiring all participants to meet the same standards. This could stimulate startups focused on electric motorcycle design and manufacturing, particularly those capitalizing on Indonesia's nickel resources.
The nickel-based battery requirement is particularly important given Indonesia's position as a major nickel producer. By creating demand for nickel-based batteries domestically, the government could enhance the value chain from raw nickel extraction to battery production, potentially creating thousands of jobs in processing and manufacturing.
For Indonesian consumers, the MOLINAS criteria could mean electric motorcycles become more readily available in the coming years. The affordable pricing requirement aims to keep retail prices competitive, while the domestic component requirement could eventually support lower prices through localized supply chains.
However, the transition will not be immediate. The existing fleet of 145 million gasoline motorcycles will take years to replace, and the charging infrastructure must expand in parallel with motorcycle adoption. The government's fuel subsidy savings — projected at Rp82.2 trillion over 11 years — could potentially fund infrastructure development, creating a positive feedback loop.
Indonesia's MOLINAS program joins a growing trend of regional electric-vehicle policy development in Southeast Asia. Neighboring countries such as Vietnam and Thailand have also introduced electric motorcycle incentives, though Indonesia's approach with mandatory domestic content requirements is notably ambitious. The program could set a precedent for how resource-rich developing nations capitalize on their natural advantages while building domestic manufacturing capabilities.
As the 2037 target approaches, the success of MOLINAS will depend on implementation effectiveness, industry adaptation, and the government's ability to balance ambitious domestic-content goals with market readiness. If the criteria successfully stimulate local production and adoption, Indonesia could emerge as a regional hub for electric two-wheeler manufacturing and technology. The program's success will also depend on whether the 11 million unit target by 2037 is achievable given current adoption rates and infrastructure development pace. Indonesia's MOLINAS program joins a growing trend of regional electric-vehicle policy development in Southeast Asia. Neighboring countries such as Vietnam and Thailand have also introduced electric motorcycle incentives, though Indonesia's approach with mandatory domestic content requirements is notably ambitious. The program could set a precedent for how resource-rich developing nations capitalize on their natural advantages while building domestic manufacturing capabilities. Indonesia holds the world's largest nickel reserves, and by creating demand for nickel-based batteries domestically, the government could enhance the value chain from raw nickel extraction to battery production, potentially creating thousands of jobs in processing and manufacturing. This approach differs from resource-poor nations that rely entirely on imported battery technology.
As the 2037 target approaches, the success of MOLINAS will depend on implementation effectiveness, industry adaptation, and the government's ability to balance ambitious domestic-content goals with market readiness. If the criteria successfully stimulate local production and adoption, Indonesia could emerge as a regional hub for electric two-wheeler manufacturing and technology. The program's success will also depend on whether the 11 million unit target by 2037 is achievable given current adoption rates and infrastructure development pace.
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- Antara News: Indonesia sets four criteria for national electric motorcycles
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Keywords
indonesia electric motorcycle, MOLINAS program, electric vehicle policy, nickel battery, sustainable transport, Southeast Asia EV market, motorcycle electrification
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