So is Malaysia, as usual, lagging behind everyone else in ASEAN in the EV future?
Indonesia’s leading early-stage venture capital firm AC Ventures (ACV) and the Electric Mobility Ecosystem Association (AEML) have released the most in-depth and authoritative report on Indonesia’s thriving electric vehicle (EV) sector and now one has to wonder, will Malaysia also lag behind Indonesia in the new EV future as well? Let’s see.
The report, titled “Indonesia’s Electric Vehicle Outlook: Supercharging Tomorrow’s Mobility,” features a series of high-profile forewords from Indonesia’s Coordinating Minister of Maritime and Investment Affairs Luhut Binsar Pandjaitan, Minister of Industry Agus Gumiwang Kartasasmita, and more.
Moreover, the report also reveals a burgeoning market for EVs in Indonesia, with the market already surpassing USD20 billion. The study also explored and analyses multiple key topics, including major industry players and infrastructure development, as well as what public and private actors can do to build a more conducive EV economy in ASEAN’s single largest market.
Indonesia has set ambitious renewable energy goals, intending to augment the proportion of renewables to 23 percent of the country’s energy composition by 2025. This marks a significant rise from the approximately 9 percent established in mid-2020. The country envisions a broader nationwide energy transition to be completed by 2056.
These initiatives are consistent with Indonesia’s obligations under the Paris Agreement to decrease emissions by 29 percent by 2030 and to attain a net-zero emissions target by 2060 or earlier and the report by ACV and AEML showcases a coalition of vital factors setting the stage for exponential growth in the nation’s EV market.
On top of that, EVs in Indonesia promise 75 percent greater efficiency and significantly lower operating costs for businesses. This offers the potential for the country’s electric mobility market to grow at a remarkable CAGR of 58.5 percent until 2030. EVs also have the capacity to substantially reduce the nation’s energy imports, which currently sits at USD35 billion annually.
While the Indonesian EV market is still in its early days, it promises massive potential. Entrepreneurs, stakeholders, investors, and policymakers who strategically position themselves today will reap substantial benefits from this burgeoning market in the coming years.
AC Ventures Managing Partner Helen Wong, explained, “The report’s revelations about Indonesia’s rapidly evolving electric vehicle market affirm the immense investment opportunity we’re witnessing. At AC Ventures, we’re excited to be at the forefront of this green energy transition, catalysing sustainable growth. The current surge and trajectory in electric two-wheelers speak to the market’s clear demand and potential for remarkable returns.”
View the full report here.
