Of the 150,000-unit target for converting fuel-powered motorcycles to electric vehicles set by the Indonesian government, only 1,500 units had been converted by the end of 2024. That figure represents just one percent of the target. Behind this striking gap, a study published in the August 2025 issue of the Journal of Engineering, Technology & Applied Science sought to answer a fundamental question: what has actually gone wrong, and how can it be fixed? The study, authored by Silvia and Dr. drg. Bambang Priyono, S.U., from the Department of Metallurgical and Materials Engineering, Faculty of Engineering, Universitas Indonesia, proposes a measurable business blueprint for accelerating motorcycle electrification in Indonesia.<\/p>\n\n\n\n
The transportation sector accounted for 37% of Indonesia's total final energy consumption in 2023, with almost all of it still dependent on petroleum-based fuels. Motorcycles, numbering 137.35 million units in 2024 and accounting for 83.77% of all registered motor vehicles, are a major contributor. Every day, the country's motorcycle fleet releases approximately 90,000 tons of CO\u2082 into the atmosphere, while fuel compensation costs reach Rp302 billion per day.<\/p>\n\n\n\n
The government has not remained idle. Through Presidential Regulation No. 55 of 2019 and its subsequent regulations, the conversion incentive was increased from Rp7 million to Rp10 million per unit. A free conversion program for 1,000 motorcycles was also launched. Yet the realization rate remained far below expectations. Conversion costs, which still ranged from Rp15 million to Rp17 million per unit, the limited number of certified conversion workshops\u2014only 34 as of April 2024\u2014and low public awareness have created barriers that incentive policies alone have failed to overcome.<\/p>\n\n\n\n
The research by Silvia and Dr. drg. Bambang Priyono, S.U., seeks to fill this gap. They developed a Sustainable Business Model Canvas (SBMC), a strategic business framework integrating economic, environmental, and social dimensions, and combined it with the PROMETHEE (Preference Ranking Organization Method for Enrichment Evaluations) method to rank business components based on the actual preferences of stakeholders.<\/p>\n\n\n\n
The methodology was comprehensive. The research team conducted semi-structured interviews with 14 purposively selected respondents representing four major groups: government regulators from the Ministry of Energy and Mineral Resources, Ministry of Transportation, Ministry of Industry, and the Indonesian National Police Traffic Corps; operators of certified conversion workshops; industry associations such as AEML and AISMOLI; and infrastructure provider PT PLN (Persero).<\/p>\n\n\n\n
The interviews produced a rich picture of the current situation. One regulator described conversion as a strategic solution for reducing fossil-fuel consumption. One government representative stated:<\/p>\n\n\n\n
\u201cElectric motorcycle conversion can reduce operating costs by up to 80% compared with petroleum-fueled vehicles.\u201d<\/em><\/p>\n\n\n\n From the infrastructure perspective, PT PLN emphasized that conversion supports the development of public charging infrastructure and accelerates the growth of the electric vehicle ecosystem as a whole. Conversion workshops also highlighted an important benefit: in addition to environmental advantages, the program can create new employment opportunities for technicians and workshop personnel.<\/p>\n\n\n\n All interview data were subsequently validated through a structured questionnaire using a Likert scale and processed using Visual PROMETHEE software to generate Phi values representing the net preference for each component.<\/p>\n\n\n\n The PROMETHEE calculations produced a clear ranking. Within the Value Proposition block, vehicle legal-status assurance ranked first, with a Phi value of 0.107, considerably higher than other components such as low-emission transportation (0.068) and operating-cost efficiency (0.033). This confirms that legal certainty regarding converted vehicles is a fundamental requirement that must be established before other elements can function effectively.<\/p>\n\n\n\n In terms of customer segments, urban users ranked first (Phi 0.223), followed by government-owned official vehicles with red license plates (0.194) and MSME operators (0.158). Rural segments ranked lowest, with a negative value, indicating that the program is most realistically initiated in urban areas with more developed infrastructure.<\/p>\n\n\n\n Strategic partnerships were equally important. The Ministry of Transportation and the Ministry of Energy and Mineral Resources emerged as the two key partners with the highest Phi values, followed by electric vehicle associations. According to the study, cross-sector collaboration is the backbone determining whether the conversion program can operate at scale.<\/p>\n\n\n\n Overall, the SBMC developed in this study contains 14 component blocks, ranging from value propositions, customer segments, distribution channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structures to two additional components that distinguish it from conventional business models: eco-social cost and eco-social benefit. The inclusion of these two final blocks ensures that environmental and social impacts\u2014including the risks of electronic waste and unequal access to technology\u2014are considered from the outset of business model design.<\/p>\n\n\n\n Although this research did not originate in a dental school, its relevance to sustainability extends far beyond disciplinary boundaries. The study demonstrates that the gap between the target and actual implementation of the motorcycle conversion program is not simply a matter of funding or technology. It is also a consequence of the absence of a cohesive, evidence-based business model.<\/p>\n\n\n\n A techno-economic analysis cited in the study found that the Total Cost of Ownership of a fuel-powered motorcycle reaches Rp8.2 million per year, whereas a converted electric motorcycle requires only Rp4.2 million per year. The savings are real. What remains lacking is a system that connects those savings to consumers' decisions to actually convert their motorcycles.<\/p>\n\n\n\n The SBMC developed by Silvia and Dr. drg. Bambang Priyono, S.U., offers that roadmap: establishing legal certainty as the foundation of trust, focusing on the urban segments that are most ready for adoption, and building strategic partnerships to ensure that the supporting ecosystem grows together. If these three pillars are developed seriously, the figure of 1,500 converted units may no longer represent a story of failure, but rather the starting point of a program that finally begins to move forward.<\/p>\n\n\n\n Authors: Achmad Zam Zam Aghasy, DDS, M.Kes.; Hazra Alifia Muharam<\/p>\n\n\n\n Photo: Pexels<\/p>\n\n\n\n DOI Source: https:\/\/doi.org\/10.36079\/lamintang.jetas-0702.855<\/p>","protected":false},"excerpt":{"rendered":" Dari 150.000 unit target konversi sepeda motor berbahan bakar ke listrik yang ditetapkan pemerintah Indonesia, hanya 1.500 unit yang berhasil terealisasi hingga akhir 2024. Angka itu setara dengan satu persen. Di balik kesenjangan yang mencolok ini, sebuah penelitian yang dipublikasikan di Journal of Engineering, Technology & Applied Science edisi Agustus 2025 mencoba menjawab: apa yang […]<\/p>\n","protected":false},"author":615,"featured_media":20960,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[359,136],"tags":[300,303,307,295,297],"class_list":["post-20957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artikel","category-berita-terbaru","tag-sdg-11-kota-dan-masyarakat-yang-berkelanjutan","tag-sdg-13-aksi-iklim","tag-sdg-17-kemitraan-untuk-mencapai-tujuan","tag-sdg-7-energi-yang-terjangkau-dan-bersih","tag-sdg-9-industri-inovasi-dan-infrastruktur"],"gutentor_comment":0,"yoast_head":"\nThe Three Most Critical Pillars<\/h2>\n\n\n\n
From Canvas to Policy<\/h2>\n\n\n\n