Market Information

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 third quarter of 2022 reached 5.72% (yoy). Indonesia’s automotive industry has remained one of the manufacturing sub-sectors contributing positively to the national industry.
In the future, automotive will transform to Electric Vehicle. The positive trend shown by electric vehicles where the government is massive in the development of electric vehicles and Indonesia will become electric car production centers. The government has targeted the production of electric vehicles based on 4-wheeled batteries or more to 600,000 units per year and 2-wheelers to reach 2.45 million units per year by 2030.
Besides that, Indonesia is one of the largest markets for motorized two-wheelers in the world. Indonesia will set roadmap for 2040 that new motorcycle sales are only for electric with aims to reduce its notable air pollution, and it is part of a larger plan that Indonesia has planned to reduced new-car sales to electrics only by 2050. Indonesia has launched a pilot project to convert motorbikes with combustion engines to electric drives. Ten motorbikes have been converted so far, and 90 more are to follow by November.The Indonesian government has set a target of having a total of 13 million electric motorbikes (including converted ones) and 2.2 million electric cars on the roads by 2030.