INDONESIA – Bright Prospect for the Southeast Asian Automotive Industry
Indonesia is the giant of Southeast Asia representing about 40% of the economy and the population of ASEAN. The Central Statistics Agency (BPS) announced that Indonesian economic growth in the first quarter of 2024 reached 5.11% (yoy). Indonesia’s automotive industry has remained one of the manufacturing sub-sectors contributing positively to the national industry.
Indonesia has emerged as a leading automotive market in the region and is now pursuing an ambitious plan for electrification. By 2030, the country aims to have at least 13 million electric motorcycles, including retrofitted ones, and 2.2 million electric cars on its roads.
The demand for hybrid and electric vehicles in Indonesia has been rising, with expectations that this will continue as the government implements policies and incentives to support the shift to green vehicles.
The government will also prioritize electric vehicle battery development, introduces policies and incentives such as tax exemptions and subsidies for purchasing electric vehicles to promote the adoption of green vehicles, and also ensuring that the increasing nickel demand is met as the EV industry continues to grow.