Xpeng’s Indonesia ally: a family-owned lifestyle retailer

Entering Indonesia’s electric vehicle market is like playing on hard mode.

On one hand, you have a sizable auto market that’s long been dominated by Japan. On the other, there’s a fast-growing electric segment that has drawn a lot of attention from China-based giants such as BYD and Chery.

Now, a new contender is stepping onto the field: Chinese startup Xpeng. But unlike its peers who set shop directly in Indonesia, Xpeng decided to partner with an unlikely ally: Erajaya, a local family-run business better known for selling gadgets than cars.

An iBox store in Bandung, Indonesia, operated by Erajaya Digital./ Photo credit: ardiwebs / Shutterstock

While Erajaya isn’t a tech startup, its vast distribution network and deep ties to the country’s business elite might be just what Xpeng needs. The companies are set to officially launch two models – the X9 and G6 – on June 19 in Jakarta. 

Automotive roots 

Founded in 1996 by brothers-in-law Budiarto Halim and Ardy Hady Wijaya, Erajaya listed on the Indonesia Stock Exchange in 2011.

Today, an entity controlled by Rebecca Halim, sister of the co-founder and wife of real estate tycoon Sugianto Kusuma – better known as Aguan – controls over 55% of Erajaya’s company’s shares.

From its early focus on distributing phones, the company has grown into one of Indonesia’s largest consumer retail groups. It operates 2,194 physical stores across Indonesia, Malaysia, and Singapore, and distributes popular tech gadget brands like DJI, Garmin, and Nothing.

However, Erajaya does have roots in Indonesia’s auto industry. Co-founder Halim, for instance, once led Kia Indonesia in the early 2000s.

In late 2024, Era Inovasi Otomotif was established as a subsidiary of Erajaya Active Lifestyle, which had gone public in 2023. The new unit went on to sign a partnership with Xpeng. The Indonesian company also recently hired Iki Wibowo – another Kia veteran – to lead this EV initiative. 

Djohan Sutanto, CEO of Erajaya Active Lifestyle, tells Tech in Asia that being a public firm helped bolster its credibility with partners like Xpeng as it signaled “financial readiness” and “transparency” for the new EV venture.

A perfect match? 

Sutanto sees EVs as lifestyle products, and selling them is something Erajaya does well. In 2024, Erajaya Active Lifestyle opened 55 new stores across Indonesia, including several outlets for Malaysian retailer MST Golf and British athletic fashion chain JD Sports.

More than just a middleman?