Market Information

Indonesia – the Leading Players for Automotive Industry

in the Southeast Asia

Indonesia is a large country with a population of 270 million and accounts for about half of the GDP of the Association of Southeast Asian Nations (ASEAN) and the automobile industry is the second largest production in ASEAN with annual sales of more than 1 million vehicles. The automotive industry in Indonesia is still a promising sector and contributes significantly to boosting the nation’s economic growth. According to the Minister of Industry of the Republic of Indonesia, Agus Gumiwang Kartasasmita, the automotive industry in Indonesia experienced extraordinary growth in 2022 and the Central Statistics Agency (BPS) announced that Indonesia’s economic growth in the third quarter of 2022 reached 5.72%.

Indonesia is one of the largest markets for motorized two wheelers in the world. For Motorcycles market in Indonesia is projected to grow by 10.91% (2022-2026) resulting in a market volume of £5.67bn in 2026. Indonesian Motorcycles Industry shown the positive signs in Q3 2022. During the third quarter, demand for 2-wheeler increased and sales were up 5.3%.

 

Electric vehicles – New Transformation of Indonesian Transportation

The Indonesian government is aggressively encouraging the national automotive industry to develop electric vehicles. The reason is the trend of future vehicles is towards the concept of saving energy and being environmentally friendly. Next year, the government will subsidize the purchase of electric vehicles with the aim of reaching 2.5 million EV users by 2025 and reducing air pollution by 29% by 2030.

Indonesia will set roadmap for 2040 the new motorcycle sales are only for electric. the large number of requests for Indonesian motorcycles is a benchmark to accelerate the transition of conventional motorcycles to electric. in addition, focusing on electric two-wheeler mobility can save on fossil fuel use. The Indonesian Government has set a target of having a total of 13 million electric motorbikes (including converted ones) and 2,2 million electric cars on the road by 2030.

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