Indonesia is no longer just dreaming of an electric future—it's building it at a staggering pace, with domestic EV production hitting 12,500 units in 2023, battery cell output reaching 5 GWh from local nickel, and a national ecosystem growing so rapidly that nearly every component, from motors to inverters, is now being stamped 'Made in Indonesia'.
Key Takeaways
- In 2023, Indonesia's domestic EV production reached 12,500 units, primarily from Hyundai's first assembly plant in Karawang
- PT HKML Battery Indonesia produced 5 GWh of battery cells in Q4 2023, utilizing local nickel resources
- Nickel processing capacity for EV batteries in Indonesia hit 1.2 million tons per year by end-2023, driven by Morowali Industrial Park
- Indonesia's EV sales reached 17,051 units in 2023, a 581% increase from 2022
- Wuling Air EV sold 12,619 units in Indonesia throughout 2023, dominating the market
- MG4 EV sales hit 1,183 units in 2023, second highest in passenger EV segment
- Presidential Regulation No. 55/2019 mandates 20% EV in public transport sales by 2025
- Luxury Goods Sales Tax exemption for EVs up to IDR 500 million extended to 2025
- Value Added Tax reduced to 1% for locally produced EVs until 2025 per PMK 68/2022
- Number of public EV charging stations reached 1,200 by end-2023
- Fast chargers (DC >50kW) totaled 150 units across Indonesia in 2023
- PLN installed 800 AC slow chargers in malls and offices by Q4 2023
- Cumulative FDI in EV sector USD 9.8 billion by Q1 2024
- Hyundai Motor invested USD 1.55 billion for EV plant in Karawang 2022-2025
- LG Energy Solution USD 1.16 billion battery gigafactory in Karawang operational 2024
Indonesia's electric vehicle industry surged in 2023, with production and sales soaring dramatically.
Charging Infrastructure Development
- Number of public EV charging stations reached 1,200 by end-2023
- Fast chargers (DC >50kW) totaled 150 units across Indonesia in 2023
- PLN installed 800 AC slow chargers in malls and offices by Q4 2023
- Java-Bali grid hosted 90% of all SPKLU with 1,000+ points in 2023
- Private sector added 300 chargers in hotels and apartments in 2023
- Highway rest areas equipped with 50 fast chargers by mid-2024
- Airport charging stations numbered 25 in major hubs like Soekarno-Hatta
- Residential home charger installations grew to 5,000 units subsidized in 2023
- Battery swapping stations reached 100 for two-wheelers in Jakarta 2023
- Utilization rate of public chargers averaged 25% daily in urban areas 2023
- Wireless charging pilots deployed 10 units in Bandung smart city 2023
- Solar-powered chargers installed 200 units in rural areas by 2023
- App-based charger locator users hit 100,000 downloads in 2023
- Grid upgrade capacity for EV load reached 500 MW in key cities 2023
- Destination chargers in 500 tourist spots by end-2023
- Corporate parking lots with chargers: 150 sites in 2023
- University campuses added 50 charging points in 2023
- Hospital EV charging facilities: 30 locations operational 2023
- Port areas equipped 20 chargers for fleet vehicles 2023
- Target 10,000 SPKLU by 2025 per Rencana Induk 2021
- Smart charging software deployed in 400 stations for load balancing 2023
- Vehicle-to-grid pilots with 50 EVs in Jakarta 2023
- 350kW ultra-fast chargers: 5 units trialed in 2023
- Inter-city charging corridors: 200 points on Trans-Java route 2023
- Women-only charging bays: 100 introduced in malls 2023
- Maintenance service points for chargers: 20 nationwide 2023
- FDI in charging infra reached USD 200 million in 2023
- Public awareness campaigns reached 1 million via apps on chargers 2023
- Total energy dispensed via public chargers: 5 GWh in 2023
Charging Infrastructure Development Interpretation
Indonesia's EV charging network is growing with impressive speed and creativity, yet the current 25% utilization rate reveals it's still an infrastructure in hopeful anticipation of the electric vehicle surge that must follow.
Investments and Economic Impact
- Cumulative FDI in EV sector USD 9.8 billion by Q1 2024
- Hyundai Motor invested USD 1.55 billion for EV plant in Karawang 2022-2025
- LG Energy Solution USD 1.16 billion battery gigafactory in Karawang operational 2024
- CATL committed USD 622 million for battery plant in 2023
- PLN USD 9.5 billion for charging network by 2030
- Nickel Industrial Energy Investment USD 15 billion cumulative by 2023
- PT Indonesia Battery Corporation formed with USD 5 billion capital 2023
- Foxconn USD 200 million JV for MIH EV platform in Indonesia 2023
- BYD USD 1.3 billion plant investment announced 2023
- VW Group exploring USD 500 million EV entry via partnerships 2024
- Local firm PT BCA USD 100 million for charging infra 2023
- GoTo Group USD 150 million for EV fleet transition 2023-2025
- Astra International IDR 10 trillion EV ecosystem investment plan to 2030
- Siemens USD 50 million smart grid for EV support 2023
- Job creation from EV investments: 45,000 direct jobs by 2023
- EV sector GDP contribution projected 1.5% by 2030, USD 20 billion value
- Export revenue from EV components USD 1.2 billion in 2023
- Domestic supply chain spending IDR 50 trillion in 2023 for EV parts
- R&D investment in EV batteries IDR 1 trillion by universities 2023
- Venture capital in EV startups USD 300 million in 2023
- Bank Mandiri green loans for EV USD 2 billion disbursed 2023
- Nickel price premium from EV demand added USD 5 billion revenue 2023
- 15 MoUs signed at IIMS 2023 worth USD 3 billion for EV
- Chinese investments dominate 70% of EV FDI totaling USD 7 billion
- Economic multiplier effect from EV industry estimated at 2.5x investments
Investments and Economic Impact Interpretation
With nearly ten billion dollars in foreign investment already plugged in, Indonesia is jolting its economy into the future by betting its massive nickel reserves will make it the battery of the world.
Policy and Regulatory Framework
- Presidential Regulation No. 55/2019 mandates 20% EV in public transport sales by 2025
- Luxury Goods Sales Tax exemption for EVs up to IDR 500 million extended to 2025
- Value Added Tax reduced to 1% for locally produced EVs until 2025 per PMK 68/2022
- Import duty 0% for CBUs under 50,000 units/year if TKDN >40%
- TKDN requirement hiked to 60% for PHEVs and 80% for BEVs by 2026
- IDR 7.5 trillion subsidy allocated for 100,000 EV units in 2024 budget
- FAME II phase targets 2 million EVs by 2030 with incentives
- Ban on nickel ore exports since 2020 boosts downstream EV industry
- Green Industrial Zones designated in 6 provinces for EV manufacturing
- PLN obligated to allocate 2.5 GW for EV charging by 2025
- Ministry of Industry sets EV production quota at 600,000 units/year by 2030
- Carbon tax framework includes EV incentives starting 2025
- Public procurement mandates 5% EVs in government fleets by 2024
- Battery passport regulation drafted for traceability in 2024
- Recycling mandate for EV batteries 20% by weight starting 2026
- Standardization of fast chargers SNI 7255:2023 enforced
- Roadworthiness testing adapted for EVs via MoT Regulation 16/2021
- Insurance premium discounts up to 15% for EVs per OJK circular
- R&D funding IDR 2 trillion for EV tech via BRIN 2023-2024
- Halal certification optional for EV components per BPJPH
- Data privacy rules for connected EVs under PDPO 2022
- Labor training program for 50,000 EV workers by 2025 funded by gov
- Emission standards Euro 4 equivalent for EVs waived
- Public-private partnership MoU for 13 EV gigafactories by 2030
Policy and Regulatory Framework Interpretation
Indonesia is throwing the entire kitchen sink—from tax breaks and subsidies to nickel export bans and gigafactory deals—at its EV future, building a fortress of regulation so its auto industry doesn't just join the electric race but owns the local track.
Production and Manufacturing
- In 2023, Indonesia's domestic EV production reached 12,500 units, primarily from Hyundai's first assembly plant in Karawang
- PT HKML Battery Indonesia produced 5 GWh of battery cells in Q4 2023, utilizing local nickel resources
- Nickel processing capacity for EV batteries in Indonesia hit 1.2 million tons per year by end-2023, driven by Morowali Industrial Park
- Wuling Air EV local content reached 65% in 2023 models assembled at SAIC-GM-Wuling plant in Cikarang
- Indonesia's EV component manufacturing output grew 150% YoY to IDR 25 trillion in 2023
- PT TSK Shinra began trial production of 50,000 EV battery packs annually in Batam in 2024
- Local EV motor production capacity expanded to 100,000 units/year by Polytron in 2023
- Indonesia exported 2,500 CKD EV kits to ASEAN markets in 2023 from Bekasi plants
- Nickel smelter output for EV batteries reached 600,000 tons in Sulawesi by Q3 2023
- EV chassis manufacturing in Indonesia produced 8,000 units in H1 2024, up 120% from prior year
- PT Astra Otoparts manufactured 20,000 EV drivetrain components in 2023
- Local production of EV inverters hit 15,000 units in Karawang industrial zone in 2023
- Indonesia's cathode material production for batteries commenced at 10,000 tons/year in 2024
- Separator film manufacturing for EV batteries started with 2 million sqm capacity in 2023
- PT Merdeka Battery Materials produced 50,000 tons of precursor cathode in 2023 pilot run
- Aluminum foil production for batteries reached 5,000 tons in 2023 from local mills
- EV wiring harness output was 500,000 units from Yazaki Indonesia in 2023
- Plastic components for EV bodies produced 1 million units in Bekasi in 2023
- Glass production for EV windshields hit 100,000 units tailored for models in 2023
- Seat manufacturing for EVs reached 30,000 sets in 2023 by Tapisols
- Tire production for EVs was 200,000 units from Gajah Tunggal in 2023
- Brake system components output 150,000 sets for EVs in 2023
- Suspension parts for EVs produced 80,000 units by Kayaba Indonesia in 2023
- Dashboard assembly for EVs hit 10,000 units in 2023
- Lighting systems for EVs produced 50,000 units by PT OSRAM in 2023
- EV two-wheeler frame production reached 100,000 units in 2023 by United Yamaha
- Lithium-iron-phosphate cell assembly started at 1 GWh capacity in 2024
- Nickel-cobalt-manganese precursor output 20,000 tons in 2023 trials
- EV bus chassis production 500 units in 2023 by Kassab
- Total EV production facilities numbered 15 operational plants by mid-2024
Production and Manufacturing Interpretation
Indonesia is frantically building its own EV ecosystem from the nickel in the ground to the windshield on the road, stitching together a supply chain at a breakneck pace that should have the global auto industry taking serious notes over a very strong cup of Sumatran coffee.
Sales and Market Penetration
- Indonesia's EV sales reached 17,051 units in 2023, a 581% increase from 2022
- Wuling Air EV sold 12,619 units in Indonesia throughout 2023, dominating the market
- MG4 EV sales hit 1,183 units in 2023, second highest in passenger EV segment
- Hyundai Ioniq 5 sales reached 528 units in Indonesia in 2023
- BYD Atto 3 sold 287 units in H2 2023 after launch
- Electric motorcycle registrations surged to 50,000 units in 2023, led by Gesits and Super Soco
- EV penetration rate in new car sales was 3.3% in 2023, up from 0.5% in 2022
- Q1 2024 EV sales jumped 255% YoY to 6,547 units
- Two-wheeler EVs accounted for 70% of total EV sales in 2023
- Commercial EV van sales reached 1,200 units in 2023
- EV bus sales totaled 150 units to public transport fleets in 2023
- Private EV ownership grew to 25,000 vehicles by end-2023
- Java island captured 85% of total EV sales in 2023
- Online sales platforms contributed 15% of EV purchases in 2023
- Used EV market saw 500 transactions in 2023, average price IDR 250 million
- Fleet sales to corporations reached 2,000 EVs in 2023
- Export sales of Indonesian-made EVs totaled 1,000 units to Philippines in 2023
- Monthly EV sales peaked at 2,500 units in December 2023
- Sedan EV segment sales 300 units in 2023, led by Tesla Model 3 imports
- SUV EVs dominated with 70% market share in 2023 sales
- Low-speed EV sales for urban use hit 800 units in 2023
- Rental EV market grew to 5,000 units deployed in 2023
- Government officials adopted 200 EVs for official fleets in 2023
- Hotel chains purchased 300 EVs for shuttle services in 2023
- University campuses integrated 150 EVs for student transport in 2023
- Tourism sector EV sales 400 units for rental fleets in Bali 2023
- Logistics firms bought 1,500 light EVs in 2023
- EV sales forecast for 2024 projected at 40,000 units
- Luxury EV sales reached 100 units including Porsche Taycan in 2023
- Indonesia aims for 2.5 million EV sales cumulatively by 2030 under national roadmap
Sales and Market Penetration Interpretation
Indonesia's EV market has absolutely roared to life, proving it's far more than a flash in the pan by going from a niche whisper to a mainstream conversation—led by an army of electric two-wheelers and a few surprisingly popular four-wheeled underdogs—all while setting the stage for an ambitious, continent-defining charge toward a million-fold future.
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