Danantara Reveals the Potential of the Indonesian Electric Motorcycle Market to Reach IDR 3.039 Trillion

JAKARTA - Danantara Indonesia sees the potential of the electric motorcycle market in Indonesia is still very large, even reaching more than Rp3,000 trillion. Meanwhile, currently, sales of new electric motorcycles only account for about 1 percent of total national motorcycle sales.

Danantara Indonesia Chief Executive Officer (CEO) Rosan Roeslani said that currently there are around 140 million motorcycles circulating in Indonesia. Meanwhile, national motorcycle sales each year reach around 6 million to 7 million units.

From this figure, continued Rosan, the purchase of new electric motorcycles is in the range of 60,000 to 70,000 units per year.

"Those who buy electric motorcycles are approximately only 60,000 to 70,000, so only 1 percent. So if we look at it, this has the potential for the future, the upside can be exponential," said Rosan at the National Electric Motor Launch (Molinas), Thursday, August 13.

With a low penetration rate, he said, the potential for the national electric motorcycle market in the future is estimated to reach around US$170 billion or equivalent to Rp3,039 trillion with an assumption of a rate of Rp17,877 per US dollar.

According to Rosan, the magnitude of this potential is one of the reasons why the government, together with SOEs and the private sector, is encouraging the development of the national electric motor industry.

Currently, there are around 10 national companies that have met the requirements for the level of domestic components (TKDN) from the Ministry of Industry.

"We also see that the market size is approximately up to 170 billion US dollars. Therefore, Mr. President, there are approximately 10 national companies that have met the criteria for fulfilling the TKDN," he said.

Rosan assessed that the development of national electric motors was possible because Indonesia also had the raw materials needed to build an electric vehicle ecosystem, especially nickel.

"We will encourage the full use of nickel-based. Because nickel, we know together, 46 percent of the world's nickel reserves are in Indonesia. And we have technology, have the ability so that the work of this nation's children can develop," he said.

In addition to industrial development, Danantara also prepares financing support to expand the use of electric motorcycles by the public. Rosan said his party had discussed with banks and financial institutions under Danantara to provide financing with lower interest rates and longer terms.

Rosan said Danantara would also strive to reduce the down payment or down payment (DP) for the purchase of electric motorcycles to zero percent.

"We will make the DP that has been there, if according to information from the bank we are 10 percent, we will try to reduce, even we will try to eliminate it, so that the public's interest in buying this electric motorcycle can run quickly, well," said Rosan.