Electric Two-Wheelers in Indonesia

Indonesia is a country consisting of 17,000 islands and a population of 280 million. It is the most populous Muslim-majority country in the world. Its urban areas are densely populated, leading to the use of motorcycles as the preferred mode of transport. Two-wheelers provide the most efficient, affordable, and flexible door-to-door mobility option. They also create a great deal of the pollution experienced by residents. Hence the need for e2Ws in Indonesia.

Statista tells us: “Indonesia produces and assembles most of the motorcycles sold domestically and exports some to other Asian countries and around the world. All of this allowed the Indonesian motorcycle market to grow to a total market revenue of about 6.03 billion U.S. dollars in 2022.”

Out of the 125 million motorcycles in use in Indonesia as at the end of 2022, only 32,000 are electric, according to Statista. The Indonesian government intends to change that with a US$455 million subsidy to encourage the manufacture of 800,000 new electric two-wheelers and the conversion of 200,000 petrol-powered scooters to electric.

Scooters with an engine capacity of 125 cc are the most popular. They are cheap and good for short trips at low or medium speed. Indonesia manufactures enough two-wheelers for domestic use and for export to the Philippines, Vietnam, and Thailand.

Japanese brands such as Honda, Yamaha, and Suzuki dominate the Indonesian market, with production in local factories. Honda, in a joint venture with PT Astra, has a 73.8% market share. It is the sole agency for the production, assembly, and distribution of Honda motorcycles in Indonesia. Its flagship models are the Honda Beat and the Honda Vario. In 2022, the company generated a net revenue of about 3.96 trillion Indonesian rupiah (about US$270 million).

Astra Honda plans to develop seven electric models by 2030. These will be in high demand, as Indonesian ride-hailing leader Gojek plans to convert its entire fleet to electric by 2030. Gojek claims to have 2 million driver partners, and growing. It wants all its driver partners riding electric two-wheelers in Indonesia.

GESITS (Garansindo Electric Scooter ITS) is now majority owned by IBC (Indonesia Battery Corporation) and is expected to dominate the e2W market. “GESITS was born from a dream to create an environmentally friendly and modern transportation tool that was made by an Indonesian company…. The Gesits Scooter is powered by a 5 KW electric motor, has a lithium ion battery of 50 volts and 40 AH to support a range of 100 kilometers on a single charge. It only takes 90 minutes to fully charge the battery.” The scooter features regenerative braking and connects to Android smartphones. Users can monitor speed, temperature, battery condition, distance travelled, and voltage through their phones.

Electric scooters are good value for money for both business and personal use. “Although electric vehicles like GESITS are more expensive to produce, they have significantly lower running costs. The cost is about US $0.11 per kWh, so you spend just US$ 0.57 when riding Gesits for 100 kilometres.” There are good savings on both fuel and maintenance. Will Gesits be Indonesia’s VinFast?

Otto.com lists 47 electric two-wheelers available in Indonesia. These range in style from scooters to motorbikes, and even a Harley-Davidson LiveWire (launching later this year). They include the Alva CERVO, Yamaha E01, Alva One, Segway E Series, and Yadea Sparta. The cheapest electric bike is the Selis Mandalika 2023, priced at Rp 4.8 million (US$340) — it looks a little like a child’s electric scooter — and the most expensive one is the Alva CERVO 2023 for Rp 37.75 million (US$2500), which looks like a full size motorcycle. The Gesit sits in the middle with a price tag of Rp 28.7 million (about US$1700). So, in my opinion, a $520 subsidy should help in e2W uptake.