Indonesia plans to reshape its two-wheeler industry by directing domestic production and sales towards electric vehicles (EVs), while conventional fuel-based models are to be targeted for export markets, an official has stated.

Industry Minister Agus Gumiwang Kartasasmita said on April 9th in Jakarta that the government is preparing regulations to accelerate the adoption of electric vehicles, particularly in the two-wheeler segment.

"The government is preparing regulations that will require manufacturers to ensure sufficient production of electric two-wheelers for the domestic market. It aims for all two-wheelers sold locally to be electric," he explained.

Conventional two-wheelers will continue to be produced, but primarily for export, with markets in Africa, the Middle East, and South America identified as key destinations.

Kartasasmita stressed that the policy is intended to maintain industrial sustainability while encouraging businesses to adapt to electrification.

"Capacity must be developed to produce electric two-wheelers. China has succeeded in becoming a base for electric two-wheelers, and Indonesia must follow," he said.

He added that President Prabowo Subianto has directed that all future vehicles should be electric, underscoring the need to reduce reliance on fossil fuels.

"There is no alternative but to transition to electric," Kartasasmita noted.

Regarding incentives for electric two-wheelers, the minister stated that discussions with the Finance Ministry are ongoing, with details yet to be finalised.