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Electrifying RI’s two-wheelers to catch the world’s biggest opportunities
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An infographic on the benefits of electric two-wheeled vehicles. (Courtesy of BCG/-)
T
he kind of growth we are about to see in the electric two-wheeler sector only comes along once in a generation. If investors and policymakers don’t catch the wave now, they will miss out on one of the world’s biggest opportunities.
There is no doubt that electric vehicles are the future for Indonesia’s automotive industry. Already, we are seeing widespread adoption, with battery-powered cars and motorbikes set to spread across the country at an unprecedented pace.
The current administration is taking our nation’s energy transition very seriously, which is encouraging. Electric vehicles are an important national priority for Indonesia, promoted in a presidential decree and other key national plans, with profound socioeconomic and environmental benefits for the nation.
Indonesia rightly aspires to be a leading market and manufacturing powerhouse for electric vehicles in the region. Two-wheeled transport will be at the heart of the opportunity.
The country has made clear its ambition to see electric two-wheelers grow to 25 percent of total two-wheeler sales by 2030, reaching an annual production capacity of 2.5 million units. But beyond aspirations, the government has also begun introducing key policies and regulations to turn the ambition into reality.
President Jokowi recently announced that government agencies and state-owned enterprises should electrify their fleets. This was done via Presidential Instruction No. 7/2022, designed to drive usage and acceptance across society.
In its latest report titled, Electrifying Indonesia’s Two-Wheeler Industry, Boston Consulting Group, in partnership with the Electric Mobility Ecosystem Association, explores the remarkable value at stake from getting this complex maneuver right and what the key catalysts are to power up Indonesia’s transformation.
