As a country with both the richest supply of nickel in the world (approximately 1.6 million MT) and close proximity to China, Indonesia is primed to capture a significant stake in electrification, particularly the lithium-ion battery market.
Although it is among the leading electric vehicle (EV) production hubs in the Asia-Pacific region, Indonesia’s domestic uptake has been slow. This could change by the end of the decade: valued at US$533m in 2022, Maximize Market Research forecasts that the local EV market could reach US$2bn by 2029—a CAGR of 21%. However, electric four-wheelers are unlikely to be at the heart of this growth.
McKinsey & Co estimates that two-wheelers currently represent 30% of global mobility, with particular importance to ASEAN member states. A July 2022 report (‘Capturing growth in Asia’s emerging EV ecosystem’) predicts a 36% electrification rate for two-wheelers by 2030—up from just 1% in 2022. As the transition progresses, the consultancy’s data modelling anticipates that Indonesia will be the third-largest electric two-wheeler (E2W) market in the world, behind only China and India.
