AC Ventures (ACV) and the Electric Mobility Ecosystem Association (AEML) have jointly released a comprehensive report shedding light on Indonesia’s emerging electric vehicle (EV) sector. Titled “Indonesia’s Electric Vehicle Outlook: Supercharging Tomorrow’s Mobility,” the report was unveiled at ACV’s headquarters in Jakarta, with key stakeholders, investors, government officials, and media representatives in attendance.
The report highlights the tremendous potential of Indonesia’s EV market, which already boasts a total addressable market value of over $20 billion, despite limited adoption thus far. It covers several crucial aspects of the industry, including major players, infrastructure development, localized production, sales, public sentiment, industry dynamics, policy and regulation, and recommendations for creating a more conducive EV economy in the region’s largest market.
Indonesia has set ambitious renewable energy goals, aiming to increase the proportion of renewables to 23% of the country’s energy composition by 2025, up from around 9% in mid-2020. The country envisions a complete nationwide energy transition by 2056, aligning with its commitments under the Paris Agreement to reduce emissions by 29% by 2030 and achieve net-zero emissions by 2060 or earlier.
The ACV and AEML report emphasizes several key factors that contribute to the exponential growth potential of Indonesia’s EV market. These factors include rising consumer demand, supportive government policies, and advancements in technology that improve performance while reducing production and ownership costs.
Businesses in Indonesia stand to benefit from adopting EVs, as they offer 75% greater efficiency and significantly lower operating costs. The report suggests that the country’s electric mobility market could achieve a remarkable compound annual growth rate (CAGR) of 58.5% until 2030. Additionally, widespread adoption of EVs has the potential to substantially reduce the nation’s energy imports, which currently amount to $35 billion annually.
Despite EV motorbikes currently representing a mere 0.2% of Indonesia’s two-wheeler market, the report identifies an opportunity for this figure to exceed 10% within the next five years. To achieve this, effective collaboration between public and private stakeholders is crucial in nurturing a supportive local EV sector.
Encouragingly, significant investments in capital and resources are already underway in Indonesia’s EV industry. Local brands and venture investors are actively forging deals and strategic partnerships, while global automotive giants such as Hyundai, Honda, Toyota, Mitsubishi, and Wuling have already entered the market.
Although the Indonesian EV market is still in its early stages, it holds enormous potential. Entrepreneurs, stakeholders, investors, and policymakers who position themselves strategically today are likely to reap substantial benefits in the coming years.
Helen Wong, Managing Partner of AC Ventures, expressed enthusiasm about the rapid evolution of Indonesia’s EV market, stating that it presents an immense investment opportunity. AC Ventures is committed to leading the green energy transition and catalyzing sustainable growth. Wong emphasized the clear demand and potential for remarkable returns in the electric two-wheeler sector and affirmed their dedication to fostering strategic collaborations to exceed Indonesia’s renewable energy targets.
Dannif Utojo Danusaputro, General Chairman of AEML, highlighted their partnership with the Indonesian government, international organizations, and key actors in the EV ecosystem to promote a positive campaign for EVs. AEML’s mission is to electrify mobility in Indonesia, driven by a desire to protect the environment and reduce pollution for future generations. The association is committed to supporting EV adoption and creating a globally competitive EV ecosystem. Danusaputro expressed pride in releasing this comprehensive report alongside AC Ventures.
As Indonesia’s EV market continues to gain momentum, it is poised to become a significant player in the global electric mobility landscape. With favorable market conditions, government support, and increasing investment interest, Indonesia is well-positioned to attract further capital and technological advancements in the EV sector.
The release of the “Indonesia’s Electric Vehicle Outlook: Supercharging Tomorrow’s Mobility” report serves as a valuable resource for stakeholders looking to capitalize on the country’s burgeoning EV market. By leveraging the opportunities presented in the report, Indonesia can accelerate its transition to a sustainable and environmentally friendly transportation system.