Fuel stations to support electric motorcycles
The agreement brings together state oil and gas company Pertamina through its subsidiary Pertamina Patra Niaga, electricity provider PLN, and defense and technology company Len Industri. Senior officials from Indonesia's sovereign wealth fund Danantara attended the signing, according to a statement received Friday, October 30.
Patra Niaga plans to add battery charging and swapping facilities at its fuel stations and strategic retail outlets. Retail Marketing Director Eko Ricky said the company had already converted 837 fuel stations across Indonesia into "green energy stations." He reported 112 EV charging points and 122 battery-swapping facilities serving electric vehicles, including motorcycles.
"Through this collaboration, we aim to ensure the transition to electric vehicles goes beyond merely providing the vehicles themselves. Equally important is building a reliable energy ecosystem that is accessible across various regions," Ricky said.
Ricky described the agreement as a strategic contribution to the national energy transition. He said the companies were committed to reducing transportation emissions and that Molinas was intended to help Indonesia meet its net-zero emissions target by 2060 or earlier.
Production ambitions and domestic requirements
Molinas aims to strengthen Indonesia's role in the electric motorcycle supply chain by developing domestic component manufacturing, vehicle assembly, battery production and after-sales services.
President Prabowo Subianto launched the program on August 13, 2026, at PT Ilectra Motor Group's ALVA production facility in Cikarang, West Java, according to ANTARA News. He called for national electric motorcycle production to reach two million units, noting that local manufacturer Indika Energy Group had produced 20,000 at that point.
At the launch, Investment Minister Rosan Roeslani also announced a purchase commitment from James Riady of the Lippo group for 20,000 Molinas motorcycles, Jakarta Globe reported.
The Coordinating Ministry for Economic Affairs has outlined an annual production capacity target of 100,000 Molinas units, with domestic component content, or TKDN, initially set at 40 percent and expected to rise to 60 percent.
Separately, ministry official Atong Soekirman described four Molinas criteria in Jakarta on August 20, 2026. The assistant deputy for industrial development said domestic content must exceed 60 percent, covering the powertrain, frame and structure, plastics and body panels. Motorcycles must also use domestically developed designs and engineering, run on nickel-based batteries, and be priced affordably for Indonesian buyers.
Rosan said Indonesia's approximately 46 percent share of global nickel reserves gave it an advantage in developing an integrated EV supply chain. He said the country already had the industrial capability to turn nickel into battery cells and battery packs for Molinas production.
The market and proposed buyer support
The Coordinating Ministry for Economic Affairs put Indonesia's conventional motorcycle fleet at 145.25 million in 2025, compared with 229,554 electric motorcycles as of December that year. It forecasts demand for electric motorcycles of 1.5 million units in 2028.
At the Molinas launch, Prabowo said buyers would be offered low-interest installment financing with no down payment. He also said electric motorcycles could cut daily mobility costs by 50 to 70 percent compared with gasoline models. The government is reviewing a trade-in scheme under which owners could exchange old gasoline motorcycles for new electric ones for a minimal fee.
A separate proposed incentive of Rp5 million, or about US$280, per electric motorcycle was still awaiting a Finance Ministry regulation as of August 17, 2026. Industry Minister Agus Gumiwang Kartasasmita said his ministry was ready to implement it once the regulation was issued.
That incentive program was expected to proceed in stages, beginning with around 6 million motorcycles. As of that August update, the Industry Ministry, Danantara Indonesia and the Finance Ministry were still discussing which brands would qualify.
Ministry forecasts savings and jobs
The Coordinating Ministry for Economic Affairs estimates that Molinas could reduce fuel subsidy spending by Rp82.2 trillion, about US$4.9 billion, over 2027-2037. That projection assumes 11 million electric motorcycles will be operating by 2037.
The ministry also projects up to Rp150 trillion, about US$9 billion, in economic value from the program's ecosystem during 2026-2031, along with around 215,000 jobs in manufacturing, components, batteries and charging infrastructure. It estimates a potential reduction in oil imports of Rp45 trillion, about US$2.7 billion.
