TEMPO.CO, Jakarta - The Employers' Association of Indonesia (Apindo) believes that the national electric motorcycle project will have a positive economic impact if it involves domestic industries. "The further note is whether this national electric motorcycle concept is genuinely a domestic product, or just a rebranding of a foreign product," said Apindo economic policy analyst Ajib Hamdani in a written statement on Tuesday, July 21, 2026.
Ajib made this statement in response to President Prabowo Subianto's plan to launch the national electric motorcycle project. To have an impact on the economy, Ajib stated that electric motorcycle components such as chassis, body packs, and wiring must have a Domestic Component Level (TKDN) of more than 50 percent.
Ajib emphasized the importance of a local component supply chain by involving cooperatives in the production of this electric motorcycle.
If the national electric motorcycle project can be realized, Ajib mapped out three positive impacts on the national economy. The first is the alignment of the design with the needs and usage of the Indonesian community's motorbikes.
In this project, Ajib said, the country is not just designing, but creating productive economic tools that will help the community's economy. The second impact is the reduction of exhaust gas emissions by more than 95 percent. The last impact, Ajib sees, is that the project will reduce the fiscal burden on fuel subsidies.
He said that currently, there are more than 145 million motorbike users in Indonesia. In his calculation, the government has to allocate a budget of more than Rp500 billion per day just to subsidize the purchase of one liter of Pertalite for one motorbike.
Ajib welcomes the national electric motorcycle project positively. He sees that the project could become a momentum for reindustrialization to strengthen the domestic economic ecosystem.
Moreover, Ajib said that Indonesia's economy is still experiencing deindustrialization. This is because the manufacturing sector only contributes around 19.2 percent to the national Gross Domestic Product (GDP). According to Ajib, this condition leads to suboptimal labor absorption and a suboptimal increase in value-added products.
He considers the push for economic growth above six percent and the commitment to create 19 million job opportunities over five years to be challenging, given that the manufacturing sector contributes less than 20 percent of the GDP.
Ajib also compared the condition of Indonesia's manufacturing industry with Vietnam. He said that Vietnam's manufacturing sector is highly developed due to regulations that promote domestic economic growth and government initiatives that push for low business costs.
He believes that targeted incentives have caused Vietnam's manufacturing sector to contribute over 23 percent to the national GDP. The strengthening of the domestic industry ultimately triggers massive job creation and drives Vietnam's economic growth in the second quarter of 2026 to reach 8.39 percent.
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