The electric vehicle (EV) market in Indonesia has experienced remarkable growth, with a 200% increase in sales between 2023 and 2024. In 2024, the country sold nearly 40,000 electric vehicles, compared to just 13,000 units the year prior. This surge highlights a growing demand for sustainable mobility in the Southeast Asian nation.

Toto Nugroho, the CEO of Indonesia Battery Corporation (IBC), confirmed the rise during a discussion with the Indonesian House of Representatives' Commission XII on February 17, 2025. The boost in sales reflects a broader shift toward electric mobility in both two-wheel and four-wheel vehicle segments. "The volume of EVs almost doubled, from 13,000 units in 2023 to nearly 40,000 in 2024," Nugroho remarked.

While this increase in sales is a positive development, it’s worth noting that most of the vehicles sold—approximately 90%—are equipped with Lithium Ferro Phosphate (LFP) batteries. These batteries, while popular, are less reliant on the rich nickel resources found in Indonesia. Nugroho suggests that future regulations should prioritize the use of Nickel-Manganese-Cobalt (NMC) batteries in electric vehicles, aligning with the government’s focus on optimizing local resources for sustainable development.

The Indonesian government and IBC are working to promote the use of NMC batteries, which align with the nation's rich nickel reserves. This shift is part of a broader strategy to bolster the country’s domestic manufacturing capabilities and reduce dependency on imported battery technology. Nugroho’s comments are aligned with a key goal of MIND ID Group, which is pushing for the broader use of NMC batteries in Indonesia's EV market.

As Indonesia moves toward expanding its electric vehicle infrastructure, the demand for EVs is expected to continue rising. The surge in sales not only reflects growing consumer interest but also demonstrates a significant shift towards cleaner, greener transportation solutions. The country’s transition to electric mobility will require continued government support, investment in battery technology, and a robust regulatory framework to meet the demand for both local and international markets.

SOURCE: CNBCINDONESIA | PHOTO: INFOBANKNEWS

This article was created with AI assistance.