Embracing an Electric Future: A Path to a Sustainable Indonesia

The development of the electric vehicle industry in the global market has brought a disruption signal to the automotive industry, especially in Indonesia. With the high level of use of motorbikes in Indonesia, electric motorbikes are a new alternative that offers the benefits of fuel efficiency and is more environmentally friendly. This report will elaborate on trends in the development of the electric motorbike ecosystem by looking at the readiness of suppliers (producers) and demander preferences (consumers).

The research methodology used in compiling this report is to collect primary data through surveys of motorcycle consumers and In-Depth Interviews with the Chairman of the Indonesian Motorcycle Industry Association (AISI). The preparation of the report is also strengthened by secondary data obtained from several publications and studies related to the development of the electric motorcycle ecosystem.

The Emergence of E-Motorcycle Industry

Motorcycles in Indonesia experienced significant growth compared to previous years. Apart from personal use, ride-sharing service providers have also started offering electric motorbike rental programs for their driver-partners such as Grab Electric and GoRide Electric. This program helps increase the number of electric motorcycles operating in Indonesia. According to Ridzki Kramadibrata, President of Grab Indonesia, in 2021 there will be more than 8,500 two-wheeled and four-wheeled electric vehicles which are the result of collaboration 

with driver-partners.

Based on the graph showing the projected growth of electric motorbikes in Indonesia listed above, electric motorbikes are predicted to overtake conventional motorbikes in Indonesia in terms of new unit sales in 2030. For this reason, the government has set ambitious electric motorbike production targets for the next few years. On the other hand, the distribution of conventional motorbikes has experienced a downward trend since 2010 ii

The Ministry of Industry of the Republic of Indonesia (Kemenperin), referring to the Regulation of the Minister of Industry of the Republic of Indonesia (Permenperin) No. 6 of 2022 states that the number of electric motorcycles in Indonesia is projected to reach 6 million units in 2025 and 9 million units in 2030. The number of electric motorcycles targeted in 2025 and 2030 is a significant jump compared to the 2020 target of only 5 thousand units of electric motorcycles.iii Targets set This ambitious plan will be supported by further development, both in terms of policy and infrastructure, such as incentive schemes and an increase in the number of charging stations.

The growth of electric motorbikes in Indonesia is helped by the preferences of the Indonesian population to own private vehicles and the increasing awareness of the Indonesian population on environmental issues. In addition, the relatively low price of electricity in Indonesia when compared to other countries will make electric motorcycles an attractive long-term investment