Report | 2025
Transforming Indonesia’s Transportation
Accelerating EV Adoption for Two- and Four-Wheelers
Exhibit 1: Indonesia e-mobility and net-zero goals timeline
EVs provide health benefits due to their zero tailpipe emissions, save money for consumers because of their lower total cost of ownership (TCO), and can help Indonesia reach its climate pollution goals due to their lower life-cycle CO2 emissions. Even without subsidies, the cost of two-wheel EVs is over 30 percent lower than their gasoline counterparts on a TCO basis, as seen in Exhibit 2 below. The unsubsidized cost of four-wheel EVs is still higher than gasoline vehicles but is projected to reach cost parity on a TCO basis by 2025–2026, depending on the model and utilization.
Exhibit 2: TCO comparison for two- and four-wheelers
This report provides a whole-system approach for how Indonesia can accelerate the adoption of electric two- and four-wheelers. This includes:
- EV policy – Comprehensive supply-side policies, as well as demand-side and infrastructure policies can support increased EV market growth.
- EV financing – De-risking financing can improve affordability and increase capital from private financiers.
- Technology adoption – Ensuring there are a diverse range of affordable vehicles on the market as well as sufficient charging infrastructure to meet Indonesian market needs is essential for increasing adoption.
- Corporate engagement and consumer awareness – Corporate stakeholders have a key role to play as early adopters, and to create demand for vehicles and charging infrastructure. Additionally, public awareness efforts can ensure consumers have the information they need to make purchasing decisions.
The Indonesian government has goals of 13 million electric two-wheelers and 2 million electric four-wheelers on the road by 2030. Reaching these goals requires significant collaboration across a wide range of stakeholders such as government ministries, original equipment manufacturers, PLN (Indonesia’s state-owned electric utility), infrastructure providers, fleet operators, financiers, and business associations. This report details the near-term and long-term actions necessary to meet these goals.
The authors are grateful for the input provided on the report by the International Council of Clean Transporation (ICCT), the Institute for Transportation and Development Policy (ITDP), and Randy Rakmadi and Etsa Amanda of Yayasan Visi Indonesia Raya Emisi Nol Bersih (ViriyaENB).
The authors would also like to thank the Drive Electric Campaign for their generous support that made this report possible.