A joint venture between Indonesia’s premier early-stage venture capital firm AC Ventures (ACV) and the Electric Mobility Ecosystem Association (AEML) has produced a trailblazing report on Indonesia’s burgeoning electric vehicle (EV) sector. The report was exclusively unveiled at ACV’s Jakarta headquarters, attended by a diverse crowd of local and global media, prominent investors, entrepreneurs, and key governmental and institutional stakeholders.
Groundbreaking Insights From Key Industry Figures
Titled “Indonesia’s Electric Vehicle Outlook: Supercharging Tomorrow’s Mobility”, the report features compelling forewords from a cadre of high-ranking Indonesian officials, including Coordinating Minister of Maritime and Investment Affairs Luhut Binsar Pandjaitan, Minister of Industry Agus Gumiwang Kartasasmita, Minister of Transportation Budi Karya Sumadi, and Pertamina New and Renewable Energy CEO Dannif Utojo Danusaputro, also serving as the General Chairman of AEML.
Indonesia’s EV Sector: A Billion-Dollar Opportunity
The report unveils a soaring market for electric vehicles (EVs) in Indonesia, boasting a total addressable market that already outpaces US$20 billion, notwithstanding the current modest adoption rate. It offers in-depth analysis on a wide array of topics, including industry giants, infrastructure development, localized production, sales, public sentiment, industry and supply chain dynamics, policy and regulation, and the potential role of public and private entities in fostering a thriving EV economy.
Indonesia’s Renewable Energy Aspirations
Indonesia has set ambitious renewable energy goals, aiming to hike the share of renewables to 23% of the nation’s energy composition by 2025, a remarkable increase from the 9% reported in mid-2020. The nation’s grand vision for a nationwide energy transition anticipates completion by 2056, aligning with Indonesia’s commitments under the Paris Agreement to slash emissions by 29% by 2030 and to hit a net-zero emissions target by 2060 or sooner.
ACV and AEML’s Vision for EVs
According to the report by ACV and AEML, an array of pivotal factors set the stage for an explosive growth in the nation’s EV market. These include a spike in consumer demand, favorable governmental policies, and technological innovations that elevate performance and reduce costs. EVs promise a 75% increase in efficiency, significantly lower operating costs, and the potential for substantial cuts in the country’s annual energy imports bill of US$35 billion.
A Promise of Substantial Growth
Though currently, EV motorbikes constitute only 0.2% of Indonesia’s two-wheeler market, the report signals a massive opportunity for this share to exceed 10% in the next five years, given effective collaboration between public and private stakeholders in nurturing a local EV ecosystem. Encouragingly, considerable capital and resource investments are already underway, with local brands and venture investors forging strategic alliances and the entry of global automotive titans into the sector.
Helen Wong, Managing Partner at AC Ventures, enthused, “The report’s revelations about Indonesia’s rapidly evolving electric vehicle market affirm the immense investment opportunity we’re witnessing. At AC Ventures, we’re excited to be at the forefront of this green energy transition, catalyzing sustainable growth.”
AEML General Chairman Dannif Utojo Danusaputro added, “We partner with the government of Indonesia, international organizations, key actors in the EV ecosystem, as well as 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.”
The full report is available for download here.