Investor Presentaiton
Outlook
Huge adoption of E2W is expected, but a stronger regulation on the upstream and midstream
industry is still needed to reduce prices
• Based on the historical growth of E2W, with 6 to 7 million motorcycles
sold annually and 82% of Indonesian households owning a motorcycle,
E2W adoption is expected to increase, especially considering the
proposed IDR 7 million incentive. The incentive could result in
approximately 40% price reductions on the market in 2023 for the
average 1.5 kW models, 25% for the average 2 kW models and 22% for
the average 3 kW models.
• With the IDR 7 million incentive, the Greater Jakarta area (Jabodetabek)
is expected to adopt 67,000 E2W units in 2023, followed by 301,000
units in 2025, and 2,869,000 units in 2030 (ADB, 2022). While in Bali,
16,000 E2W will be adopted in 2023 and 677,000 in 2030 under the
same scenario.
To achieve the 2.1 million target (RUEN) in 2025, the government
needs to invest USD 1.1 billion, which accumulates from upfront cost
incentives and the installation of SPBKLUS. Meaning, the government is
not only relying on brands to install SPBKLU.
Million units
3
2
1
E2W growth projection for Jakarta & Bali with IDR 7 million incentive
0.3
0.1
0.06
2023
2024
2025
1.2
+71%
1.8
al
0.5
0.12
2026
Greater Jakarta
0.8
+71%
0.4
0.2
0.19.
2.8
0.6
2027
2028
2029
2030
Bali
Source: ADB, 2022
• Between 2022 and 2030, it is predicted that the TCO for E2W will decline by 9% per year due to competition and reduced battery prices (ADB, 2022). In 2023, IBC will
supply 50,000 battery packs for domestic E2W use. The expansion of E2W will encourage manufacturer competition in the market, potentially driving E2W to lower
prices, better features and quality. To maximize the growth of E2W and SPBKLU, the government must regulate battery standardization and force to increase the share
of LCR, particularly in light of the fact that range anxiety continues to be a major concern for Indonesian private users.
Indonesia Electric Vehicle Outlook 2023
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