By Sherine Chen    Photo： CANVA

Indonesia, long known for its strong two-wheeler culture, is now accelerating toward an electric future. With more than 125 million motorcycles on its roads, Indonesia has traditionally been one of the largest motorcycle markets in the world. But that dominance is now evolving.

Transition to Electric Vehicles

Facing increasing pressure from rising fuel costs, urban air pollution, and global climate goals, Indonesia is actively encouraging a shift toward electric vehicles (EVs). Though EVs still make up a small portion of the overall vehicle market, sales have more than doubled in the past year.

Government-Driven Growth

The Indonesian government is also actively supporting the transition with strong policies and incentives—such as tax exemptions in Jakarta and a reduced 1% VAT nationwide for electric vehicles. In addition, the government is also implementing fast-tracked investment processes for companies building charging infrastructure and battery swap stations. The country has set ambitious goals: 2 million electric cars and 12 million electric motorbikes by 2030.

With its abundant nickel reserves, a growing middle class, and supportive policies, Indonesia is emerging as one of the most promising EV markets in Southeast Asia. For international companies and startups in the EV ecosystem—whether in vehicles, batteries, charging solutions, or digital mobility services—Indonesia represents a valuable and strategic market for long-term growth. 

Indonesia’s shift from traditional motorcycles to electric vehicles is creating not just a cleaner future, but also a wide-open market for business opportunities. With demand growing, policies in place, and industrial development accelerating, now is the right time for EV companies to plug into Indonesia’s electric mobility revolution.

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