Disclaimer: The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters. To work with Reuters Plus, contact us here.
$3-4.5b
Indonesia Is Driving
The World’s EV Future
Indonesia's US$20b+
EV opportunity
Target of 400,000 battery electric vehicles by 2025
Target of 1.8m battery electric bikes by 2025
Ambitious government targets
The EV end-user
The EV manufacturer
Tax incentives for EV manufacturers
Corporate income tax holiday (up to 20 years) for investment in EV industry
Tax deduction of up to 300% of costs incurred in R&D & technological innovation
Lower risk weight of 75% for loans for EV value chain activities and exemption from maximum credit limit if guaranteed by BUMN
Government grants free access to government owned BEV-related technology to EV players
Professional certification for battery industry
Import duty exemption on semi-knocked down kits for EV
Tax incentives for EV end-users
Exemption from road restrictions for 4W EV
Lower risk weighting of 75% for loans for EV purchasing
Luxury goods tax reduction for EVs – 0% for battery or fuel cell EVs if local content requirement met
Parking fee discount
IDR7m subsidy for EV-2-wheelers; other subsidies for 4-wheelers
21m
Indonesia
19m
Australia
11m
Brazil
1.6m
Madagascar
1.8m
Guatemala
0.44m - Columbia
0.11m - US
6.5m
Others
5.5m
Cuba
7.6m - Russia
4.8m - Philipines
3.7m - South Africa
2.7m - Canada
2.8m - China
Nickel reserves (tons)
Indonesia has the largest nickel reserves and is the world’s biggest nickel producer. The country is also the world’s second-largest cobalt supplier.
Domestic supply of copper and bauxite is also ample, benefitting electronics manufacturing in general.
Abundant natural resources
INDONESIA – Leading Electric Vehicle Hub
Tax Incentives
Indonesia’s location in Southeast Asia provides access to a rapidly growing regional market for EVs.
Strategic geographic location
Indonesia has the largest population in Southeast Asia and is expected to be the 4th largest economy in the world by 2050.
Potential of huge domestic demand
South East Asia
Indonesia
2020
1,947 Units
2022
26,000 Units
Motorbikes (numbers in units)
2020
230 Units
2022
7,600 Units
Electric vehicles (numbers in units)
Indonesia experienced huge growth in EV sales in 2022
Private vehicles are responsible for more than 25% of global oil use and 10% of global energy-related CO2 emissions.
Driving the EV Revolution
INDONESIA
Indonesia
Australia
Brazil
Russia
Others
Cuba
Philippines
South Africa
China
Canada
Guatemala
Madagascar
Columbia
United States
21m
19m
11m
7.6m
6.5m
5.5m
4.8m
3.7m
2.8m
2.7m
1.8m
1.6m
Nickel reserves (tons)
Myanmar - 3.18
Philippines - 92.22
Vietnam
232.41
Thailand
1,883.52
Indonesia
1,470.15
Number of motor vehicles produced in Southeast Asia in 2022, by country (in 1000s)
Indonesia is already the second-largest automotive producer in Southeast Asia.
Automotive giant
Indonesia is a major oil importer and transitioning to EVs can reduce its dependence on fossil fuel imports — aligning with the country’s goal of achieving energy security and reducing trade deficits.
Energy independence
The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters.
PRODUCED BY REUTERS PLUS FOR
Presence of global players
Cell manufacturing and battery management system (US$)
$12.5-15b
Auto research and development and manufacturing (US$)
$2-3b
Charging
infrastructure (US$)
$0.5-1.5b
Service maintenance and battery recycling (US$)
$1-2b
Vehicle sales and dealership
(US$)
READ MORE
Indonesia’s green transformation is vital in driving its next stage of economic growth. Southeast Asia’s largest economy offers immense opportunities in clean energy technologies, sustainable finance and a fair carbon market ecosystem.
Indonesia’s net-zero ambitions
More from this series
In 2022, China’s CATL announced $5.97b in joint investments to build a battery chain project focusing on mining, recycling
and manufacturing
In 2023, Ford and Volkswagen (PowerCo) announced that it will join PT Vale Indonesia and China’s Zhejiang Huayou Cobalt to build a $4.5b nickel processing plant
In 2020, Toyota announced an investment of US$2b to produce EVs in Indonesia
In 2021, LG Energy Solution and Hyundai Motor Group started building a $1.1b EV battery plant in Karawang, Java
In 2021, Mitsubishi announced an investment of US$779m to produce hybrid and battery EVs in Bekasi
Wuling invested US$1b from 2015-2021 for localized EV production in Indonesia
In 2020, Honda announced an investment of US$370m to produce EVs in Indonesia
In 2019, Hyundai announced an investment of US$1.5b to produce EVs in West Java plant
READ MORE
A transformative and sustainable investment destination
The Reuters news staff had no role in the production of this content.
It was created by Reuters Plus, the brand marketing studio of Reuters.
PRODUCED BY REUTERS PLUS FOR
INDONESIA –
Leading Electric
Vehicle Hub
Ambitious government targets
READ MORE
A transformative and sustainable investment destination
More from this series
READ MORE
Indonesia’s green transformation is vital in driving its next stage of economic growth. Southeast Asia’s largest economy offers immense opportunities in clean energy technologies, sustainable finance and a fair carbon market ecosystem.
Indonesia’s net-zero ambitions
Disclaimer: The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters. To work with Reuters Plus, contact us here.
READ MORE
Southeast Asia’s largest economy is ripe for economic transformation. With abundant natural resources, healthy economic growth and a youthful population, Indonesia’s economy is primed for a seismic shift.
Indonesia’s half-trillion-dollar move up the value chain
READ MORE
Indonesia’s green transformation is vital in driving its next stage of economic growth. Southeast Asia’s largest economy offers immense opportunities in clean energy technologies, sustainable finance and a fair carbon market ecosystem.
Indonesia’s net-zero ambitions
