Astra Boss Responds to Vehicle Electrification Trend in Indonesia

Amid efforts to accelerate vehicle electrification in Indonesia, PT Astra International Tbk assesses that the shift from internal combustion engine (ICE) vehicles to electric vehicles will not occur instantaneously. The diverse nature of the domestic market is cited as the primary factor.

Astra Director Gidion Hasan stated that electrification is indeed progressing, but it has not yet spread evenly across all regions.

Therefore, in his view, various vehicle technologies will continue to operate side by side for the foreseeable future.

With the entry of various new brands and the aggressive launch of electric vehicles, the electrification trend is increasingly evident, particularly in major cities.

Support from infrastructure such as public electric vehicle charging stations (SPKLU) and government incentives is also driving adoption, although it remains uneven nationwide.

On the other hand, hybrid vehicles offer a more flexible transitional option. In addition to not fully relying on charging infrastructure, this model is also more readily accepted in various areas with diverse usage conditions.

Indeed, data up to the first quarter of 2026 shows that electric car sales continue to grow significantly, with a total of more than 30,000 units and a market share of around 10-15 percent. Nevertheless, conventional engine vehicles still dominate with the majority portion of total sales.

In light of this situation, Astra is adopting a multi-technology strategy by continuing to offer a variety of vehicle options, from ICE, hybrid, to pure electric.

This approach is considered a way to maintain competitiveness amid an industry transition that is not yet fully uniform.