In Jakarta, the Indonesia International Motor Show has unveiled a wave of electric vehicles and motorbikes from leading global brands, signaling a significant shift in the nation’s automotive landscape. Despite challenges such as limited infrastructure and high costs, the event highlights the growing momentum towards electrification in one of Asia's largest vehicle markets.

Discover the Future of Sustainable Transport in Southeast Asia

The Dawn of Electric Vehicles in Indonesia

The Indonesia International Motor Show in Jakarta recently opened its doors to an array of cutting-edge electric vehicles (EVs) and motorbikes. Over 50 international and domestic brands showcased their latest innovations, with several debuts making headlines. Notably, Chinese automaker BYD introduced its Sealion 7 electric SUV, while Vietnamese manufacturer VinFast unveiled its VF 3 mini electric SUV. Additionally, China’s Honri made its Indonesian debut with the five-passenger Boma EV. While Asian companies dominated the show floor, European giants like Volkswagen and BMW’s Mini also presented their offerings. The event underscored the industry's commitment to transitioning toward sustainable transportation solutions, even as Indonesia grapples with a sluggish uptake of EVs. According to the Indonesian Automotive Manufacturers Association, sales fell by nearly 14% in 2024, dropping from 1 million units in 2023 to 866,000. Yet, this downturn has not deterred exhibitors from pushing forward with electric models.

Motorbike Dominance and Electric Potential

Indonesia boasts one of the world's largest fleets of motorbikes, with over 132 million registered units in 2023. At the motor show, motorbikes were a prominent feature, with both foreign-made Royal Enfields and Vespas sharing the spotlight alongside locally produced Alvas. The integration of electric technology into this vast market could revolutionize daily commuting patterns. However, the transition remains slow, with only 7% of the country’s fleet currently comprising electric vehicles and motorbikes, according to consulting firm PwC.Despite the challenges, manufacturers recognize the potential for growth. VinFast, for instance, is partnering with V-Green to install 30,000 charging stations across Indonesia, addressing a critical barrier to EV adoption. The company’s CEO, Pham Sanh Chau, emphasized the importance of building a comprehensive ecosystem to support electric mobility. “Without chargers, we cannot sell the car,” he noted, highlighting the strategic approach to overcoming infrastructure limitations.

Government Initiatives and Industry Partnerships

The Indonesian government is actively pursuing partnerships with automakers to establish the country as a global hub for electric vehicles. Leveraging its abundant reserves of critical materials like nickel, essential for battery production, Indonesia aims to attract investment in EV manufacturing. South Korea’s Hyundai and China’s Wuling have already established plants in the country since 2022, joining other international players.Minister of Industry Agus Gumiwang Kartasasmita highlighted the role of the motor show in revitalizing the automotive sector. In a declining market, stakeholders are exploring strategic initiatives to boost consumer interest in purchasing motor vehicles. The government’s efforts extend beyond the automotive industry, with a focus on accelerating the energy transition. Despite receiving substantial funding to retire coal and adopt greener alternatives, renewable energy still accounts for only 14% of the country’s power mix in 2024.

Challenges and Opportunities in the EV Market

The path to widespread EV adoption in Indonesia faces hurdles such as inadequate infrastructure, high upfront costs, and concerns about performance. A 2023 report by the Institute for Essential Services Reform identified these factors as key barriers. However, manufacturers are responding proactively. VinFast and BYD are investing in local EV production facilities, aiming to reduce costs and improve accessibility.Moreover, the push for electrification aligns with broader environmental goals. As Indonesia seeks to reduce its reliance on fossil fuels, the development of a robust EV ecosystem offers a promising avenue. The Indonesia International Motor Show serves as a platform to showcase this vision, demonstrating the potential for a cleaner, more sustainable future in mobility.