Indonesia to Launch New National Electric Motorbike Brand as Prabowo Drives Reindustrialization Push

JAKARTA, Investortrust.id — Indonesia is doubling down on its green energy ambitions as President Prabowo Subianto prepares to unveil a new national electric motorcycle brand in August 2026.

The government-backed initiative aims to spearhead a broader reindustrialization drive, slashing massive energy subsidies while building a self-sustaining domestic automotive ecosystem in Southeast Asia’s largest economy.

Indonesia is struggling with structural deindustrialization, as manufacturing currently contributes just 19.2% to gross domestic product (GDP). By establishing a fully integrated electric vehicle (EV) supply chain, the archipelago aims to boost manufacturing above 20%, lower fuel import burdens, and unlock an estimated Rp 198 trillion ($12.45 billion) in economic value alongside 143,000 high-quality jobs.

Local Engineering Takes Center Stage

Chief Technology Officer of sovereign entity BPI Danantara, Sigit Puji Santosa, confirmed that Indonesian engineers designed the upcoming electric two-wheeler from the ground up. Speaking to reporters at the Presidential Palace complex in Jakarta on Wednesday, July 22, 2026, Sigit emphasized that the national project will rely entirely on local production networks.

"It will be a completely new brand designed by Indonesian engineers—the design and production are ours," Sigit said. He added that PT Pindad, the state-owned defense company, will remain focused on developing national electric cars, leaving two-wheeler production to a distinct designated entity.

Presiding over a joint military harvest event in Malang, East Java, on Friday, July 17, 2026, President Prabowo Subianto first signaled the imminent rollout. "Very soon, we will have our own national motorcycle," Prabowo declared to attendees, setting the official launch timeline for mid-August.

Indonesia is not starting from a total standstill in its quest for a homegrown electric two-wheeler. State-backed pioneer Gesits—originally developed under state construction giant PT Wijaya Karya (Persero) Tbk (WIKA) subsidiary WIKON before state battery consortium Indonesia Battery Corporation (IBC) acquired a controlling 53.9% stake in late 2022—already operates in the domestic market, serving as an early benchmark for state-driven EV initiatives.

Driving Reindustrialization and Supply Chains

Economic analysts view the national EV project as a critical lever to push economic growth past 6%. Indonesian Employer Association (Apindo) economic policy analyst Ajib Hamdani noted in a written statement on Wednesday, July 22, 2026, that Vietnam’s aggressive, growth-pro legislation lifted its manufacturing contribution above 23% of GDP, yielding an 8.39% year-on-year growth rate in mid-2026.

To deliver a meaningful trickle-down effect for small and medium enterprises, Hamdani stressed that the new EV brand must exceed a 50% Domestic Component Level (TKDN), including domestic intellectual property for chassis, body packs, and wiring. Connecting local automotive cooperatives to the supply chain will optimize the vehicle for Indonesia's 145 million motorcycle users while cutting tailpipe emissions by over 95%.

Overcoming Battery Import Reliance

Industry groups have echoed strong support while highlighting critical supply chain bottlenecks. Budi Setiyadi, Chairman of the Indonesian Electric Motorcycle Industry Association (Aismoli), noted during a phone interview with Investortrust.id on Sunday, July 19, 2026, that while national brands exist, upstream dependency remains high.

Core components such as battery cells, controllers, and drive motors are still heavily imported from China. Setiyadi urged the government and state enterprises to build localized component manufacturing plants that offer competitive pricing, ensuring domestic assemblers do not remain vulnerable to external trade shocks.

The Fiscal Case for Transport Electrification

Beyond driving industrial growth, accelerating electric vehicle adoption serves as a critical fiscal hedge against volatile global energy markets. According to a detailed policy analysis by the Jakarta-based Institute for Essential Services Reform (IESR), transitioning the nation's transport sector away from internal combustion engines could slash fossil fuel imports and energy subsidies by up to Rp 502.4 trillion ($31.6 billion) annually. When factoring in the complete electrification of both passenger cars and motorbikes, the total fiscal relief for the state budget could reach Rp 595 trillion ($37.42 billion) per year.

The economic benefits extend directly into public healthcare savings and long-term industrial creation. Government health expenditures are projected to drop by Rp 1.3 million ($81.76) annually for every motorbike converted to electric, alongside an annual saving of Rp 6 million ($377.36) per converted passenger vehicle due to reduced urban air pollution. Furthermore, an integrated domestic EV supply chain is estimated to inject Rp 198 trillion ($12.45 billion) into the national economy while creating 143,000 skilled jobs.

For everyday consumers, the total cost of ownership (TCO) leans heavily in favor of electric power over fossil fuel alternatives over time. Elimination of routine maintenance—such as spark plug, oil, and filter replacements—combined with lower charging costs relative to non-subsidized gasoline yields a net lifetime economic benefit of up to Rp 45 million ($2,830) per electric motorbike and Rp 118 million ($7,421) per electric passenger car.