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Indonesia nears 90% of planned EV investment target
Indonesia’s government reports that investment in the electric vehicle (EV) sector has reached around 15.5 percent, with nearly 90 percent of planned investments already realized, indicating strong investor interest and industry readiness.
Ali Murtopo, Deputy for the Digital Economy and Trade, said EV investment is a crucial pillar of Indonesia’s national industrial self-reliance agenda.
The national EV manufacturing capacity has surpassed 300,000 units, and domestic EV sales have exceeded 100,000 units, representing about 12.9 percent of total vehicle sales.
The number of EVs in Indonesia is now estimated to be over 330,000 units, reflecting the development of infrastructure and supply chains.
Ali also highlighted the progress across the EV supply chain, from mining and smelters to battery production, supported by ongoing investments and policies.
The government aims for the EV sector to drive economic growth and position Indonesia as a global hub for automotive manufacturing and innovation.
🔗 Source: CNN Indonesia
🧠 Food for thought
Implications, context, and why it matters.
Indonesia’s EV numbers are dominated by two-wheelers, not cars
- National EV manufacturing capacity is reported at more than 300,000 units, yet that headline figure blurs what is actually being built.
- Electric car capacity totals 110,660 units, while electric two- and three-wheeler capacity reaches 2.51 million units a year 1.
- The claim that EVs make up 12.9% of total vehicle sales overstates progress when set against official passenger EV data.
- Official figures put EVs at 6.25% of total passenger vehicle sales in 2024, up from 2.12% in 2023 and 1.3% in 2022 2.
- Government goals still sit well ahead of current adoption, with targets of 2 million electric cars and 13 million electric motorcycles by 2030 3.
Indonesia’s subsidy-driven EV boom faces a sustainability test
- Investment interest tracks fiscal support more than underlying demand.
- Value-added tax incentives that lower purchase prices are due to end in December 2025, and policy is expected to move toward production mandates plus other non-fiscal steps rather than broad consumer subsidies 4.
- That shift could cut demand and strain EV makers, battery producers, and backers.
- Coal-heavy power adds an environmental tradeoff, since one EV battery can create 2.4 to 5.3 tons of CO2 and total EV production can run 6,300 to 9,100 kg CO2e 3.
- Those emissions could weaken plans to become a global hub as partners push for cleaner supply chains 3.
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