EVs gain traction on Indonesian roads as more consumers make the switch

Electric vehicles are gaining ground in Indonesia, as more consumers discover the many benefits of driving EVs, industry participants said.

Moeldoko, general chairman of the Electric Vehicle Industry Association (PERIKLINDO), said about 130 brands of electric passenger automobiles, motorcycles and commercial vehicles will be displayed at PERIKLINDO Electric Vehicle Show (PEVS) 2025, an annual trade expo to be held April 29 to May 5 in the capital city of Jakarta. That number is significantly higher than the 82 brands exhibited last year and 81 brands in 2023. He said this shows the growing demand for EVs in Indonesia.

"A friend of mine initially knew nothing about electric cars. And later he sold all his [conventional] cars and replaced them with electric ones after learning that they are more efficient and more comfortable," Moeldoko said in an April 22 news briefing held prior to the opening of PEVS 2025.

Some of the world's biggest EV brands like China's BYD and Wuling, South Korea's Hyundai, and Germany's BMW will be showcased at PEVS 2025.

Moeldoko said the central government and regional administrations are strengthening cooperation to encourage the adoption of EVs in areas outside of the major urban centers. He said representatives of regional governments will also participate in PEVS 2025.

Daswar Marpaung, president director of event organizer Dyandra Promosindo, said putting on events like PEVS has helped promote EVs in Indonesia and shown why using EVs is more eco-friendly compared with conventional cars.

Daswar said EVs, which have no internal combustion engine, appeal to those who want a quieter and smoother driving experience. He added that the younger generation of Indonesian consumers also like that EVs are loaded with gadgets and other accessories.

Indonesia is the biggest automotive market in Southeast Asia, with total car sales hitting over 860,000 units in 2024. It's also a growing market for EVs, with the government aiming to deploy 2 million electric cars and 12 million electric two-wheelers by 2030 as part of its commitment to reduce carbon emissions.

Indonesia is aiming to become a big manufacturer and exporter of EVs, as it is home to the world's largest nickel deposits – the main mineral used in making batteries for EVs. The government aims to transform Indonesia to be the world's third-largest producer of electric batteries by 2027 and produce 600,000 EVs by 2030.

To encourage more Indonesians to use EVs, the government offers consumer subsidies for EVs and gives tax breaks to EV companies.

The Indonesian EV market used to be dominated by Hyundai and Wuling. But after the government introduced subsidies and tax incentives in 2023, other new brands came in.

Doni Putra Okten, head of the marketing and sales section at PT Sokonindo Automobile, said more Chinese EVs are now on the country's roads. PT Sokonindo, a partnership between Indonesian and Chinese companies, assembles and distributes Chinese EV brands DFSK and Seres in Indonesia.

"Rising visibility and EV adoption indicate strong market acceptance of electric cars," Doni told China Daily correspondent on the sidelines of the news conference.

He also welcomed the private sector's part in EV development by establishing charging infrastructure in areas outside major cities.

Prime Sarmiento in Hong Kong contributed to this story.