Investor Presentaiton
Executive Summary
Indonesia Electric Vehicle Outlook 2023
Executive Summary
• In an effort to become an end-to-end producer of nickel-based EVs, the local industries initiate partnerships with battery companies, although the planned COD is
still three years away. The delayed development of the midstream EV battery industry is crucial, as the domestic EV industry has an increasing demand. Additionally,
the government is promoting the growth of the domestic industry through public procurement and EV subsidies to ensure that the industry meets local content
requirements for participating in the government's program.
• Maritime battery-powered vessels are currently limited by their low energy density compared to other alternatives. This results in a reduction in cargo space, making
battery-powered boats practical only for short-distance trips and small gross tonnage. Several SMEs in Indonesia have innovated by developing battery-powered boats
for the small-scale fishery sector, which is economically challenged by reduced access to subsidized fuel.
• In the aviation industry, electric aircrafts are also limited by the low energy density of batteries, which affects the cruise range. The current certified electric aircraft
has an energy density of 144 Wh/kg, but research into advanced battery technologies is aimed at increasing this to 500 Wh/kg. Aircraft manufacturers worldwide are
developing electric aircraft designs, particularly in the VTOL segment, which are expected to enter the commercial market in the next few years.
• Commercial (B2B) and government adoption could provide a viable initial market for the EV industry. Currently, several businesses (ride-hailing and logistics companies)
start electrifying their fleets and set a target of 100% by 2040. This could ensure that the EV adoption in the domestic EV industry grows years before the retail
(individual) market develops. However, for now, some businesses are still opting for ICEVS with higher power than EVs (mainly in motorcycles), which could be a barrier
to B2B adoption. For the government, some sub-national governments are advancing in the adoption of EVs as official vehicles.
• E2W adoption increased 5 times between 2020 and 2022. With the impending IDR 7 million cost reduction, the E2W adoption outlook is expected to be higher from
2023 onwards, especially since some E2W models are priced at the same price range as their best-selling ICEV counterparts. As the domestic industry is also growing,
mainly the E2W battery industry and E2W manufacture, costs are expected to decrease year by year. The total cost of ownership (TCO) of E2W is expected to decrease
by 9% per year between 2022 and 2030 (ADB, 2022).
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