Indonesia EV Charging Infrastructure Growth Market

Indonesia EV Charging Infrastructure Market valued at USD 1.1 Bn, driven by government mandates, EV adoption, and investments, with robust growth projected through 2030.

The Indonesia EV Charging Infrastructure Growth Market is valued at USD 1.1 billion, based on a five-year historical analysis. This growth is primarily driven by explicit government mandates, a surge in electric vehicle adoption, and robust public-private investments in charging infrastructure. Key drivers include incentives such as reduced Value-Added Tax for locally manufactured EVs, 0% import duty for manufacturers establishing domestic factories, and PLN’s off-peak electricity discounts for home charging, all of which are accelerating both public and residential charging deployment.

Key cities such as Jakarta, Surabaya, and Bandung dominate the market due to their high population density, rapid urbanization, and targeted government support for electric mobility. Jakarta, as the capital, has seen the largest rollout of public charging stations and battery swap infrastructure, while Surabaya and Bandung are emerging as important hubs for EV adoption and infrastructure expansion, supported by the presence of major automotive manufacturers and ongoing urban development.

The regulatory framework for EV charging infrastructure is governed by Presidential Regulation No. 55/2019, as updated by Presidential Regulation No. 79/2023, issued by the Government of Indonesia. This regulation mandates the acceleration of EV charging station deployment, including requirements for the installation of charging stations in new commercial buildings and public facilities. It establishes operational standards, licensing requirements, and incentives for both public and private sector participation, and forms a core part of Indonesia’s National Electric Vehicle Roadmap.

Indonesia EV Charging Infrastructure Growth Market Segmentation

By Type:

The market can be segmented into various types of charging solutions, including AC Charging Stations, DC Fast Charging Stations, Battery Swapping Stations, Wireless Charging Solutions, Portable Charging Units, and Others. AC Charging Stations are the most widely used due to their cost-effectiveness and suitability for residential and commercial applications. DC Fast Charging Stations are gaining traction for their ability to rapidly charge vehicles, supporting the growing demand for quick turnaround charging, especially in urban centers. Battery Swapping Stations are emerging as a viable option, particularly for two-wheelers and fleet operators, as they offer convenience and minimize vehicle downtime. Wireless and portable charging solutions are being piloted in select locations, targeting premium and flexible-use segments.

By End-User:

The end-user segmentation includes Residential, Commercial, Industrial, Government & Utilities, and Fleet Operators. The Residential segment leads the market, driven by the increasing number of electric vehicle owners opting for home charging solutions, supported by PLN’s discounted off-peak electricity rates. The Commercial segment is significant, with businesses investing in charging infrastructure to support their fleets and attract EV-driving customers. Government & Utilities are expanding public access through state-led and public-private charging projects, while Fleet Operators are rapidly adopting EVs and battery swapping solutions to reduce operational costs and improve efficiency.

Indonesia EV Charging Infrastructure Growth Market Competitive Landscape

The Indonesia EV Charging Infrastructure Growth Market is characterized by a dynamic mix of regional and international players. Leading participants such as PLN (Perusahaan Listrik Negara), PT Pertamina (Persero), Electrum (Gojek & TBS Energi Utama JV), Starvo Indonesia, Shell Recharge, ABB Ltd., Schneider Electric, Siemens AG, Hyundai Motor Company, Wuling Motors, Charge+ (Singapore-based, active in Indonesia), EVBox, ChargePoint, Inc., Tesla, Inc., LG Energy Solution contribute to innovation, geographic expansion, and service delivery in this space.

Indonesia EV Charging Infrastructure Growth Market Industry Analysis

Growth Drivers

Increasing Government Support for EV Adoption:

The Indonesian government has set a target of having 2.2 million electric vehicles (EVs) on the road in future, supported by a budget allocation of IDR 1.5 trillion (approximately USD 100 million) for EV infrastructure development. This includes incentives for consumers and manufacturers, which are expected to drive EV sales significantly. The government’s commitment to reducing carbon emissions by 29% in future further emphasizes the importance of EV adoption in Indonesia's transportation sector.

Rising Environmental Awareness Among Consumers:

A survey conducted by the Indonesian Ministry of Environment revealed that 68% of urban consumers are increasingly concerned about air pollution and climate change. This growing environmental consciousness is driving demand for cleaner transportation options, including EVs. As a result, the number of EV registrations in Indonesia surged to over 30,000 units in future, reflecting a shift in consumer preferences towards sustainable mobility solutions that align with their values.

Development of Renewable Energy Sources:

Indonesia aims to increase the share of renewable energy in its energy mix to 23% in future, with significant investments in solar and wind energy. In future, the country added approximately 1.2 GW of renewable energy capacity, which is crucial for powering EV charging stations sustainably. This transition not only supports the growth of the EV market but also aligns with global sustainability goals, making EVs more attractive to environmentally conscious consumers.

Market Challenges

Insufficient Charging Infrastructure:

As of the most recent data, Indonesia had approximately 1,400 public charging stations, below the estimated 10,000 needed to support the growing EV market. This lack of infrastructure poses a significant barrier to EV adoption, as potential users are deterred by concerns over range anxiety. The government’s plan to increase this number to 5,000 in future is a step forward, but the current shortfall remains a critical challenge for the industry.

High Initial Investment Costs:

The average cost of an electric vehicle in Indonesia is approximately IDR 600 million (around USD 40,000), which is significantly higher than conventional vehicles. This price point limits accessibility for many consumers, particularly in a country where the average annual income is about IDR 60 million (USD 4,000). Financial incentives and subsidies are essential to mitigate these costs and encourage broader adoption of EVs among the population.

Indonesia EV Charging Infrastructure Growth Market Future Outlook

The future of Indonesia's EV charging infrastructure market appears promising, driven by increasing government initiatives and consumer demand for sustainable transportation. With the anticipated rise in EV adoption, the government is expected to enhance its investment in charging infrastructure, aiming for a more robust network in future. Additionally, the integration of smart technologies in charging solutions will likely improve user experience and efficiency, further encouraging the transition to electric mobility across urban and rural areas.

Market Opportunities

Growth in Public-Private Partnerships:

Collaborations between the government and private sector can accelerate the development of charging infrastructure. With an estimated IDR 10 trillion (USD 670 million) needed for infrastructure expansion, leveraging private investment can significantly enhance the pace and scale of deployment, making EVs more accessible to consumers.

Integration with Smart City Initiatives:

As Indonesia develops smart city projects, integrating EV charging stations into these frameworks presents a unique opportunity. In future, the government plans to invest IDR 5 trillion (USD 335 million) in smart city technologies, which can include efficient charging solutions, enhancing urban mobility and sustainability while attracting tech-savvy consumers.