Revving Up the Transition to Battery Electric Vehicles in Indonesia

Insight
Sep 6, 2023

Indonesia ranks 14th globally in car sales, with a total of more than one million cars sold in 2022 alone, representing an 18% increase amidst the COVID-19 recovery situation. This remarkable achievement has positioned Indonesia as the largest car market among Southeast Asian countries. However, despite this success, the adoption of Battery Electric Vehicles (BEVs) in Indonesia remains limited, accounting for only 1% of total sales. This figure is significantly behind the global adoption rate of 14% and slightly below Southeast Asia's 2% adoption rate. Nevertheless, Indonesia holds the potential to accelerate BEV adoption due to its rich natural resources and high demand for cars.

In this report, we emphasize the importance of increasing BEV penetration in Indonesia and assess the country's current BEV adoption status. We then analyze and summarize the key factors that can facilitate an increase in BEV penetration in Indonesia. Lastly, we provide suggestions and elaborate on the actions that each stakeholder needs to undertake to accelerate BEV adoption.

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