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Indonesia has not yet developed clear incentives schemes for vehicle electrification, however several ministerial regulations to support adoption of EVs were enacted from 2020.

Tax Incentives: Electric vehicle businesses with a capital of over USD 34.7 Mn will receive a 100% cut in corporate income tax, while investments worth USD 6.9–34.7 Mn will receive a 50% cut. The government is considering to provide a tax holiday to battery makers to increase the production of electric cars in Indonesia.

Relatively Cheap Electricity Cost: Indonesia provides cheapest electricity in the region. Compared to the price of petroleum at around USD 0.9/L, electricity in Indonesia only costs for USD 0.1/kwh. This can give future EV users great economic benefits, which could also be the main driver for EV to further develop in Indonesia.

New State-owned company will shape Indonesia into an EV hub: With the largest reserves of nickel, a key raw material for lithium-ion batteries, Indonesia has a vision to lead the global EV battery market. In 2021, the government established IBC (Indonesia Battery Corporation) to begin forging industry where IBC will begin battery cells in 2023, and implement full battery production in 2025.

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Favorability for Personal Transportation Ownership: EV uptake in Indonesia could also be the result of Indonesian growing population and the rising of middle to affluent class, which means increasing purchasing power that leads to higher purchase of personal vehicle. The growing trend to live environmentally conscious in Indonesia. Despite growing development of public transport infrastructure, ownership of personal transportation is still favored by most Indonesians. This is due to the flexibility, convenience, symbol of economic status, and increasing usage of personal vehicles after Covid.

Analysts at Ken Research in their latest publication “Indonesia LEV Market Outlook to 2026F – Driven by the Indonesian Government’s policies, incentives and subsidies to make the country free emission by 2060by Ken Research observed that the LEV market in Indonesia is currently quite under- developed but has huge potential in the future owing to strong support from the government’s vision to make the country emission free. Growing population and rise in middle class affluent for personal transportation ownership along with moderate demand for e-mobility across Indonesian cities is expected to contribute to the market growth over the forecast period. The Indonesia LEV Market is expected to grow at a CAGR of 102.5% over the forecasted period 2021-2026F.

Key Segments Covered in Indonesia Light Electric Vehicle Market: –

By Type of Vehicle



By Type of 2-Wheeler



By Maximum Speed

0-30 km/h

30-60 km/h

60+ km/h

By Engine Capacity

0-30 kW

30-70 kW

70+ kW

By Battery Type

Unremovable Battery

Removable Battery

By End User



By Commercial End User

Grocery Delivery

Food Delivery

CEP Delivery


By Region






Key Target Audience

LEV Manufacturers

LEV Dealers/Distributors

Fleet Aggregators

Government Agencies

Automobile Consultants

Multiple Unit Dwellings and Transport Infrastructure

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Time Period Captured in the Report:

Historical Period: 2016-2021

Forecast Period: 2021-2026

Companies Covered:






United Bike



NIU Technologies



Key Topics Covered in the Report: –

Indonesia Country Profile

Indonesia Population Analysis

Value Chain Analysis of LEV Market

Indonesia LEV Market Size and Segmentations

Growth Drivers of Indonesia LEV Market

SWOT Analysis of Indonesia LEV Market

Government Strategic Plans to accelerate growth of EVs

Government Initiatives and Regulations in Indonesia LEV Market

Key Trends and Developments in Indonesia LEV Market

Key Stakeholders for EV Development in Indonesia

Battery Swapping and Technology Innovations in EV Charging

Issues and Challenges of Indonesia LEV Market

End User Analysis

Competitive Landscape and Cross Comparison of Major Players

Market Opportunities and Potential for EV Charging Manufacturers

Potential Product Options and Emerging Business Solutions

Case Studies

Research Methodology


For More Information on the research report, refer to below link:

Indonesia Light Electric Vehicle Market

Related Reports by Ken Research: –

Indonesia Electric Vehicle Charging Equipment Market Outlook to 2026: Driven by influx of investment from abroad coupled with increasing focus on emission control

Future Potential Market of LEVs in Last Mile Delivery Industry in KSA – Favorable Government Policies and Better Charging Infrastructure Availability to drive the LEV Sales in KSA Market

Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications



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