The electric vehicle ecosystem is a crucial foundation for accelerating the energy transition and developing future industries in Indonesia.
With abundant nickel resources, significant investments from global companies, and proactive government policies, Indonesia has the opportunity to become one of the world’s largest electric vehicle and battery production hubs.
The development of electric vehicles in Indonesia goes beyond vehicle sales. It also includes the establishment of battery supply chains, charging infrastructure, manufacturing facilities, and integrated support systems.
These efforts are expected to drive sustainable economic growth while helping reduce carbon emissions from the transportation sector. Moreover, Indonesia is currently at a critical stage in transforming its automotive industry.
As global attention toward clean energy continues to grow, both the government and industry players are strengthening the electric vehicle ecosystem to support national development goals and achieve net-zero emissions in the future.
Indonesia Has Strong Foundations for Developing an Electric Vehicle Ecosystem
One of the key factors that positions Indonesia strategically within the electric vehicle industry is its vast nickel reserves.
Nickel is a primary raw material used in electric vehicle batteries, which are the most critical component of EV (Electric Vehicle) technology. Indonesia is recognized as one of the countries with the largest nickel reserves in the world.
With nickel resources totaling billions of tons, Indonesia is no longer serving solely as a raw material exporter. The country is increasingly developing downstream industries that produce higher-value products.
This potential has attracted significant interest from global investors.
International companies across mining, battery manufacturing, and automotive sectors have begun investing in Indonesia to establish production facilities and processing plants for electric vehicle materials.
At the same time, the domestic electric vehicle market continues to grow. Although EVs still represent a relatively small share of total vehicle sales, the growth trend remains highly positive.
The Indonesian government has even set a target of having millions of electric cars and motorcycles operating in the country by 2030.
To support this target, the government offers various incentives, including tax reductions, exemptions on certain import duties, and local content requirements (TKDN) aimed at strengthening domestic industries.
These policies are a vital part of building a robust and sustainable electric vehicle ecosystem.
Read More: Electric Vehicle Development in Indonesia: Trends, Challenges, and Future Prospects
Infrastructure and Supporting Industries Are Key
The success of electric vehicles is not determined solely by the number of units sold.
Supporting infrastructure such as public EV charging stations (SPKLU), battery manufacturing facilities, after-sales services, and battery recycling systems also play a crucial role.
One notable example of investment comes from Hyundai, which has not only established EV manufacturing operations in Indonesia but has also invested in EV charging networks and battery production facilities.
These investments are being made through collaboration with LG Energy Solution and PT Indonesia Battery Corporation under the HLI Green Power project.
This demonstrates that developing an electric vehicle ecosystem requires a comprehensive approach.
However, challenges remain.
Increasing competition from imported electric vehicles with lower price points could affect the willingness of companies to invest in local manufacturing facilities and infrastructure development.
Therefore, balancing incentive policies with efforts to strengthen domestic industries remains essential.
Government and Private Sector Collaboration Accelerates Ecosystem Development
The Indonesian government continues to demonstrate its commitment to accelerating the transition toward electric transportation.
Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, has emphasized that developing the electric vehicle ecosystem is one of the country’s key strategies for reducing dependence on fossil fuels and accelerating the adoption of clean energy.
The government is also strengthening the national industry through infrastructure development, incentives, and policies designed to encourage wider EV adoption.
International cooperation also plays a significant role.
One example is the Bali E-Mobility Project, facilitated by the Global Green Growth Institute (GGGI) and supported by the Government of South Korea.
The initiative aims to accelerate green transportation development through electric bus deployment, charging infrastructure development, and the creation of sustainable transportation investment roadmaps in Indonesia.
These efforts are increasingly important considering that the transportation sector contributes approximately 27% of Indonesia’s greenhouse gas emissions.
Without swift and measurable action, emissions from this sector are expected to continue rising in the years ahead.
Electrum and TBS’s Role in Building Indonesia’s Electric Vehicle Ecosystem
One company making a significant contribution to Indonesia’s electric vehicle ecosystem is Electrum.
Established in 2021 by TBS and GoTo Group through PT Energi Kreasi Bersama, Electrum develops an integrated electric mobility ecosystem encompassing vehicle assembly, battery technology, battery swapping networks, charging infrastructure, and EV financing solutions.
Since its establishment, Electrum has achieved several important milestones.
In 2022, President Joko Widodo inaugurated an electric vehicle ecosystem collaboration involving Electrum, Pertamina, Gogoro, and Gesits.
That same year, Electrum supported the G20 and B20 Summits in Bali by providing 50 electric motorcycles, 11 shelters, and 150 Gojek driver-partners.
Electrum’s commitment was further strengthened through a US$15 million funding package secured at the end of 2024 from the Asian Development Bank, Australian Climate Finance Partnership, and Bank DBS Indonesia.
The funding is being used to expand electric vehicle procurement and develop battery-swapping networks with the potential to reduce greenhouse gas emissions by up to 123,000 tons annually.
In October 2024, Electrum launched the H3i electric motorcycle, offering flexible charging options both at home and through battery-swapping stations.
Then, in 2025, Electrum introduced another model, the Electrum H1, providing Indonesian consumers with more EV options.
By 2025, Electrum had operated more than 370 Battery Swapping Stations supporting over 6,000 electric motorcycles throughout Jakarta.
The network facilitates more than 19,000 battery swaps daily and has helped prevent over 3,200 tons of CO₂ emissions.
Read More: 7 Advantages of Electric Motorcycles, Their Drawbacks, and Why They Are Worth Choosing in Indonesia
Driving the Future of Indonesia’s Electric Vehicle Ecosystem with TBS
Building an integrated electric vehicle ecosystem is a strategic step toward supporting the energy transition, strengthening national energy security, and enhancing Indonesia’s global competitiveness.
The success of this transformation requires close collaboration among government agencies, investors, vehicle manufacturers, infrastructure providers, and the public.
Through Electrum, TBS demonstrates a strong commitment to accelerating electric vehicle adoption in Indonesia.
Its initiatives span electric vehicle development, battery technology, battery-swapping networks, charging infrastructure deployment, and the operation of more than 370 battery-swapping stations supporting over 6,000 electric motorcycles.
With continued innovation and investment, TBS Energy plays an important role in creating an integrated electric vehicle ecosystem capable of supporting Indonesia’s journey toward a more advanced green economy.
