Investor Presentaiton
Outlook
Increasing interest from financing institutions based on historical trends and positive outlook
Financing for EVs credit payment (IDR billion)
Multifinance
2021 (EV only)
2022 (EV only)
2023 Outlook EV only
2022 (EV + ICEV)
Total financing
EV percentage
(2022)
CNAF
ADMF
MTF
Sources: IESR analysis
14
50
100
9,200
9,200 (2022)
0.5%
2
29.6
60-70
25,600
31,700 (2022)
0.09%
35.8
165.9
N/A
N/A
16,300 (2021)
1%
• Between 2020 and 2022, EV financing for credit purchases added up to between IDR 600 billion and IDR 700 billion as financing companies started to finance EVs. These
institutions predict that financing for EVs will boom by 2 - 3 times in 2023. More than three financing institutions to offer various payment schemes. Since OJK issued
a Circular in 2022 stating that EVS could be bought on credit without a down payment (0%), this triggered notable multi-finance institutions to offer different payment
scheme with incentives to customer. The incentives vary, for example 0% interest in the first two years, 0% interest for the first year but the down payment is only
10% and the term is longer (7 years), lower interest rates for E4W credit purchases in some areas, lower down payments than ICEV car purchases and price subsidies
of IDR 2.5 million for some E2W brands.
• Despite the likely boom, there are several challenges in EV financing in both E2W and E4W related to the risks. The risk profile of EVs is different from ICEVs, because
for EVs, vehicle values and battery values are separated. There is also uncertainty about battery reliability, future technological advancements, and residual value
calculations, especially for E4W.
Indonesia Electric Vehicle Outlook 2023
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