Investor Presentaiton

Indonesia Electric Vehicle Outlook 2023 Executive Summary • Indonesia's greenhouse gas emissions are almost 600 MtCO2-eq in 2021. The largest source of emissions is from the supply side, namely energy industries (power generation), which account for around 50% of total emissions. In the demand side, the transport sector is the largest source of emissions, accounting for 23% of total emissions. In the transport sector, road transportation is the largest contributor with over 90% share. • From 2015 to 2020, imported gasoline accounted for 52% of total gasoline consumption. The consumption of gasoline increased by 1.2 million kiloliter per year between 2015 and 2020, except when the pandemic hit in 2020. High dependence on imported gasoline makes our energy security vulnerable to fluctuating price of global commodities. Rising fossil fuel prices in 2022 forced the government to increase subsidized gasoline prices, leading to inflation starting at the end of Q3 2022. • Decarbonization of road transport is achieved by changing travel behaviour to reduce demand, which includes reducing unnecessary travel (avoid), shifting to low- carbon modes (shift), and transitioning to clean energy vehicles (improve). The improve strategy, such as switching to EV, is easy to implement as everyone can easily participate. The adoption of EV also opens the opportunity to accelerate the deployment of renewable energy, and in the long term can provide flexibility in the demand side through vehicle-to-grid operation. • EVs have 7% less emission and 14% lower cost per km than their ICEV counterparts. Grid emissions factor, fuel production emissions, vehicle efficiency, fiscal incentives by government, traveled distance, and fuel price play an important role in EVs' GHG emissions and total cost of ownership calculation. • Lack of infrastructure, high upfront cost, and low performance hinder the adoption of EVs. EVs that have competitive prices compared to ICEVs are more likely to be adopted. Another way to boost EV adoption is by retrofitting the vehicle through a conversion program. However, consumer confidence in conversion programs is low due to shorter warranty periods and a lack of knowledge and experience in converted vehicles. • With limited access and high gasoline costs, EVs are the solution for remote areas. In addition, the availability of charging infrastructure and government tax exemptions are also important to support EV adoption. However, the reliability of electricity could be a problem in rural areas. Executive Summary 16

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