The Government of Indonesia has been intensifying efforts to cut transport-related emissions by expanding public transportation systems and accelerating the growth of its electric vehicle (EV) industry,
Moreover, fuel consumption reached 295 million barrels in 2024, with subsidies averaging IDR135 trillion annually between 2022 and 2024. Indonesia’s EV market has grown rapidly, with imports of completely built-up (CBU) EVs rising from 2,000 units in 2023 to 18,000 units in 2024. Imports are expected to reach 65,000 units in 2025, bringing total sales to about 100,000 units, of which 35,000 will be locally produced. Starting in 2026, the government will phase out incentives for CBU imports, limiting them only to firms that commit to domestic EV production. Officials expect this to shift the market fully towards locally manufactured EVs, aligning with the government’s broader industrial and environmental goals.
