Indonesian motorcycle sales fell drastically by 43.57 percent in 2020 compared a year ago due to the COVID-19 pandemic - Photo by President Office

JAKARTA (TheInsiderStories) – Indonesia will produce the electric motorbikes with brand Gesits (Garansindo Electric Scooter ITS) starting 2019. Gesits is the result of a collaboration between local automotive company Garansindo Group and the Ten November Institute of Technology in Surabaya.

The electric motorbikes has been prepared since two years ago. In addition to headlamps and shock breakers, all components of Gesits are domestic products with a percentage reaching 89 percent.

The production will take place at the PT Wika Industri dan Konstruksi factory. The temporary target is 60 thousand units per year.

“Inshaallah the mass production began in January 2019,” said Minister of Research, Technology and Higher Education Mohamad Nasir at the Merdeka Palace courtyard. Jakarta, Wednesday (07/11).

He added, the amount of production will be added if the market demand is increasingly. The speed of the electric motor is also tested to Bali and according to him does not have a problem.

The new scooter has been tested by President Joko Widodo today and welcomed the breakthrough initiatives. He promised to become the first buyer and buy the electric motorcycle up to 100 units.

He added, the government would not protect the production of this electric motorcycle. Most importantly, he said, the price per unit of this electric motorbike must be competitive in order to get the market.

Garansindo Commissioner Zaki Nahdi Saleh added, currently his party has received orders for electric motorcycles of up to 30 thousand units from the market. According to him, the market price for each unit of Gesits is around Rp23 million (US$1,533.33).

He continued, later this Gesits motorbike will be produced up to five thousand units per month.

Beside produce electric motorbikes, Indonesia also has planned to produce electric car, as part of government move to boost the use of green energy utilization in the country and reduce gas emissions. The official draft of presidential decree on electric car now waiting approval from President Widodo.

Since early of 2018, the government has announced to produce presidential decree that will pave the way for the development of the electric car in the country. Many developed countries are starting to leave the sale of hydrocarbon-fueled cars and switch to electricity.

The Government of Britain and France have even made bold steps to prohibit non-electric vehicle sales for highways starting 2040. The government also drafting a regulation that will slash the luxury goods sales tax and import duty of electric car, said Industry Minister Airlangga Hartarto said on Feb. 26.

The government, he stated, to slash the luxury tax to 0 percent and import duty to 5.0 percent and its expect will be finalized within one month.

Indonesia is still far behind in the development of the electric cars. Industry players have blamed lack of infrastructure support, such as charging points or stations, which discouraged car makers to produce electric cars.

Some industry players also demand the government to provide incentives in order to lure car makers to produce electric cars. Such incentives are needed to encourage car makers to produce electric cars and catch up with other countries.

Globally, China has taken the lead in developing electric cars. Goldman Sachs has said that China is expected to supply 60 per cent of the world’s electric vehicles by 2030, up from 45 per cent in 2016.

Minister Hartarto admitted that Indonesia needs time to prepare regulatory framework, infrastructure support and technology development. He said the plan to develop electric car has already been included in the country’s national vehicle industry roadmap.

The government needs to look at the readiness of electric cars component producers, such as battery and power control unit, before issuing new regulations. Hartarto said the government targets that by 2025, around 20 percent of cars produced in Indonesia will be low carbon emission vehicles, including electric cars.

Global carmakers such as Nissan Motor Corp., and Mitsubishi Motors Corp., have rolled out their electric cars for the mass market in 2010. But the electric vehicle revolution failed to materialize and much of their investments went sour.

To capture the market for these vehicles, global carmakers from Volkswagen to Tesla are attempting to lock in supplies of raw materials that are needed to increase production of lithium-ion batteries, which will power this electric revolution.

Many developed countries are starting to leave the sale of hydrocarbon-fueled cars and switch to electricity. The Government of Britain and France have even made bold steps to prohibit non-electric vehicle sales for highways starting 2040. 

Ardika added, the ministry sees, the automotive industry in Indonesia is still showing a positive stretch in an effort to improve its performance amid the dynamics of the global economy. This strategic sector further deepens its manufacturing structure so that it is believed to be more globally competitive and able to meet the needs in the domestic and export markets.

In 2017, the automotive industry contributed to the national economy of 10.16 percent and was able to absorb direct employment of around 350 thousand people and indirect labor of 1.2 million people.

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