Electric cars and motorbikes star at Indonesia's motor show despite country's slow uptake

JAKARTA, Indonesia (AP) — The future of Indonesia’s automobiles and motorbikes is electric — at least according to exhibitors at the Indonesia International Motor Show, which opened in the country's capital city of Jakarta on Thursday.

That's despite the country's own slow uptake of electric vehicles and motorbikes, which only make up a small fraction of the vehicles in the world's fourth most populated country.

Over 50 international and domestic brands were on display at the massive exhibition hall, with several brands staging Indonesian debuts for hybrid or electric vehicles. Chinese automaker BYD unveiled its Sealion 7 electric SUV, while Vietnamese automaker VinFast's electric-powered VF 3 mini SUV had its Indonesia debut.

The event also welcomed a new automaker to Indonesia, with China's Honri bringing its five-passenger Boma EV.

While the show floor was dominated by Asian companies, other international makers were present as well, including Germany's Volkswagen and BMW's Mini.

Motorbikes — of which Indonesia has one of the largest fleets in the world, with over 132 million registered in 2023 — were also a mainstay of event, with foreign-made Royal Enfields and Vespas on display alongside Indonesia-made Alvas.

A much smaller part of the show featured fossil fuel-powered jet skis and boats, which can be seen on the vast coastlines, rivers and lakes of the country's over 17,000 islands.

Outside the exhibition hall, drivers enjoyed new-car smell as they test drove cars across parking lots and over steep ramps. Eager leasing agents and sales representatives awaited drivers as they stepped out from behind the wheel.

The show opened as the country faced a slowdown in it's automative industry last year: In 2024 sales fell by nearly 14% — from 1 million units in 2023 to 866,000 in 2024 according to the Indonesian Automotive Manufacturers Association. Indonesia’s number of registered vehicles was reported at 24,646,825 units in 2023, according to the association.

Indonesia’s Minister of Industry, Agus Gumiwang Kartasasmita, said the event is expected to be one of the main drivers in the recovery of the country’s slowing automotive sector.

“In a declining market condition, all stakeholders, including the government, need to find strategic steps to increase public interest in shopping for motor vehicles,” he said during the event’s opening.

While sales of electric vehicles and motorbikes are rising, they're still just 7% of the country’s fleet, according to consulting firm PwC.

A lack of infrastructure, high upfront cost and low performance hinder the adoption of EVs in Indonesia, according to a 2023 report by Indonesia-based nongovernmental organization Institute for Essential Services Reform.

Some EV makers said they recognize these barriers and are working to tackle them.

VinFast is partnering with V-Green, a spin-off from VinFast's charging station development division, to build 30,000 chargers across Indonesia, said VinFast Asia CEO Pham Sanh Chau.

“Without (chargers), we cannot sell the car," he said. “That’s why we come in with the whole ecosystem."

VinFast and other electric vehicle makers such as BYD are also building EV manufacturing plants in Indonesia. South Korea’s Hyundai and China’s Wuling have both had EV plants in the country since 2022.

The Indonesia government has sought partnerships with makers as it is eager to turn the country into an international hub for EVs, leveraging its abundant reserves of critical materials needed to make batteries.

The small percentage of sales matches the slow progress of Indonesia’s energy transition: Despite receiving billions of dollars in funding to retire coal and transition to greener energy, the country's renewable energy mix was ​​just 14% in 2024, with a majority of energy coming from highly-polluting fossil fuels such as coal.

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