Based on AC Ventures and AEML report, a total value of burgeoning market for Electric Vehicles (EVs) in the archipelago has exceeded US$20 billion.
Heaptalk, Jakarta — A burgeoning market for Electric Vehicles (EV) in Indonesia reportedly has surpassed US$20 billion, despite its minimal adoption across the country.
As cited from Indonesia’s Electric Vehicle Outlook: Supercharging Tomorrow’s Mobility report which was released by Indonesia’s leading venture capital company AC Ventures, and the Electric Mobility Association (AEML), Indonesia has set ambitious renewable energy goals, intending to augment the proportion of renewables to 23% of the country’s energy composition by 2025. This output indicates a significant rise from the approximately 9% established in the middle of 2020.
AC Ventures’ Managing Partner, Helen Wong, conveyed that the current surge and trajectory in electric two-wheelers speak to the market’s apparent demand and potential for remarkable returns. As a pioneering investment firm in this sector, Helen claimed the firm continues to foster strategic collaborations to exceed Indonesia’s renewable energy targets, promising a future of reduced emissions and enhanced sustainability.
The country envisions a broader nationwide energy transition to be completed by 2056. These initiatives are consistent with Indonesia’s obligations under the Paris Agreement to decrease emissions by 29% by 2030 and attain a net-zero emission target by 2060.
According to the report, the EV industry in the country promises a greater efficiency of up to 75% and significantly lower business operating expenses. This sector offers potential for the country’s electric mobility market to grow at a remarkable CAGR of 58.5% until 2030. Further, the electric vehicles sector can substantially minimize the nation’s energy imports, which currently total US$35 billion annually.
Hitherto, EV motorbikes account for a mere 0.2% of Indonesia’s two-wheeler market. However, the report suggests an opportunity for this matter to exceed 10% over the coming five years, assuming that public and private stakeholders collaborate effectively to nurture a conducive local EV sector.
Encouragingly, considerable capital and resource investments are already in progress. Local brands and venture investors are actively forging deals and strategic partnerships, and the sector has already ushered in global automotive giants, such as Hyundai, Honda, Toyota, Mitsubishi, and Wuling.
Responding to the launch of this report, the General Chairman of AEML admitted, “We partner with Indonesia’s government, international organizations, EV practitioners, and other associations to reach out to more people and promote a positive campaign for EVs. Our mission of electrifying mobility in Indonesia is based on a calling to protect the environment by reducing pollution for future generations. Through the launch of this report, we expect to boost EV adoption to be more competitive globally.”
