Indonesia has not yet developed clear incentives schemes for vehicle electrification, however several ministerial regulations to support adoption of EVs were enacted from 2020.
Tax Incentives: Electric vehicle businesses with a capital of over USD 34.7 Mn will receive a 100% cut in corporate income tax, while investments worth USD 6.9–34.7 Mn will receive a 50% cut. The government is considering to provide a tax holiday to battery makers to increase the production of electric cars in Indonesia.
Relatively Cheap Electricity Cost: Indonesia provides cheapest electricity in the region. Compared to the price of petroleum at around USD 0.9/L, electricity in Indonesia only costs for USD 0.1/kwh. This can give future EV users great economic benefits, which could also be the main driver for EV to further develop in Indonesia.
New State-owned company will shape Indonesia into an EV hub: With the largest reserves of nickel, a key raw material for lithium-ion batteries, Indonesia has a vision to lead the global EV battery market. In 2021, the government established IBC (Indonesia Battery Corporation) to begin forging industry where IBC will begin battery cells in 2023, and implement full battery production in 2025
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Favorability for Personal Transportation Ownership: EV uptake in Indonesia could also be the result of Indonesian growing population and the rising of middle to affluent class, which means increasing purchasing power that leads to higher purchase of personal vehicle. The growing trend to live environmentally conscious in Indonesia. Despite growing development of public transport infrastructure, ownership of personal transportation is still favored by most Indonesians. This is due to the flexibility, convenience, symbol of economic status, and increasing usage of personal vehicles after Covid.
Analysts at Ken Research in their latest publication “Indonesia LEV Market Outlook to 2026F – Driven by the Indonesian Government’s policies, incentives and subsidies to make the country free emission by 2060” by Ken Research observed that the LEV market in Indonesia is currently quite under- developed but has huge potential in the future owing to strong support from the government’s vision to make the country emission free. Growing population and rise in middle class affluent for personal transportation ownership along with moderate demand for e-mobility across Indonesian cities is expected to contribute to the market growth over the forecast period. The Indonesia LEV Market is expected to grow at a CAGR of 102.5% over the forecasted period 2021-2026F.
Key Segments Covered in Indonesia Light Electric Vehicle Market: -
By Type of Vehicle
2-Wheeler
3-Wheeler
By Type of 2-Wheeler
Scooters/Mopeds/Bikes
E-Cycles
By Maximum Speed
0-30 km/h
30-60 km/h
60+ km/h
By Engine Capacity
0-30 kW
30-70 kW
70+ kW
By Battery Type
Unremovable Battery
Removable Battery
By End User
Commercial
Private
By Commercial End User
Grocery Delivery
Food Delivery
CEP Delivery
Others
By Region
Jakarta
Kalimantan
Java
Sumatra
Others
Key Target Audience
LEV Manufacturers
LEV Dealers/Distributors
Fleet Aggregators
Government Agencies
Automobile Consultants
Multiple Unit Dwellings and Transport Infrastructure
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Time Period Captured in the Report:
Historical Period: 2016-2021
Forecast Period: 2021-2026
Companies Covered:
Gesits
Viar
Volta
Selis
Polygon
United Bike
Gelis
Tomara
NIU Technologies
ECGO
Kymco
Key Topics Covered in the Report: -
Indonesia Country Profile
Indonesia Population Analysis
Value Chain Analysis of LEV Market
Indonesia LEV Market Size and Segmentations
Growth Drivers of Indonesia LEV Market
SWOT Analysis of Indonesia LEV Market
Government Strategic Plans to accelerate growth of EVs
Government Initiatives and Regulations in Indonesia LEV Market
Key Trends and Developments in Indonesia LEV Market
Key Stakeholders for EV Development in Indonesia
Battery Swapping and Technology Innovations in EV Charging
Issues and Challenges of Indonesia LEV Market
End User Analysis
Competitive Landscape and Cross Comparison of Major Players
Market Opportunities and Potential for EV Charging Manufacturers
Potential Product Options and Emerging Business Solutions
Case Studies
Research Methodology
Appendix
For More Information on the research report, refer to below link:
Indonesia Light Electric Vehicle Market
Related Reports by Ken
Research: -
Contact Us: -
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
