Guangdong targets electric motorcycle industry potential in Indonesia
Guangdong, China, is targeting the significant potential of electrifying around 140 million motorcycles in Indonesia by encouraging investment in the new energy vehicle industry and charging infrastructure as part of strengthening economic cooperation between the two countries. Through a forum jointly organised by the Foreign Affairs Office of the Guangdong Provincial Government and the Consulate General of the Republic of Indonesia in Guangzhou, held in Guangzhou, southern China, they focused on deep processing in the downstream sector of new energy products and light industry manufacturing for consumer needs, aiming to encourage investment by Guangdong companies in Indonesia.
More than 100 representatives from government, business and academia from China and Indonesia attended the event. Ma Wenfeng, director general of the Foreign Affairs Office of the Guangdong Provincial Government, said Guangdong and Indonesia have strong economic and trade relations, according to Xinhua. Trade value between Guangdong and Indonesia accounts for approximately one-sixth of total China-Indonesia trade. Several leading Guangdong companies, including BYD, Midea and OPPO, have established and developed their businesses in Indonesia.
Ma said Guangdong is one of China’s main manufacturing bases. The province has all 31 official manufacturing industry categories and 10 industrial clusters each generating annual revenue of 1 trillion yuan (1 yuan = Rp2,648) or approximately 148.8 billion US dollars (1 US dollar = Rp17,844).
Indonesia, the world’s fourth most populous country with more than 280 million people, has a large and growing consumer market. Strategically, Indonesia is located at the heart of ASEAN and serves as a gateway to a regional market of more than 700 million people, said Acting Consul General of the Republic of Indonesia in Guangzhou Andalusia Tribuana Tungga Dewi. She added that Guangdong’s advanced manufacturing base and technological expertise align closely with Indonesia’s ambitions to enhance industrial capacity, accelerate the energy transition, and strengthen downstream industrial sectors.
Wu Lei, deputy general manager of PT Indonesia BTR New Energy Material, has worked in Indonesia for nearly three decades. In 2023, Guangdong-based BTR expanded to Indonesia and began building two factories in two industrial estates in Indonesia. The first phase of the project, valued at 478 million US dollars with an annual production capacity of 80,000 tonnes of anode material, was completed in just 10 months. Once the second phase is completed, total investment will reach 777 million US dollars with an annual production capacity of 160,000 tonnes.
Indonesia is estimated to have around 140 million motorcycles serving as the primary mode of transport for short-distance mobility, opening significant potential for electrification and substantial opportunities for Guangdong’s new energy industry, said Xiong Xindong, brand strategy officer of Guangdong Lidun New Energy Technology.
Guangdong-based home appliance company TCL began its business in Indonesia in 2004. Deng Yinghao, assistant president of TCL Technology Group, recounted how a small team brought product prototypes to Indonesia more than 20 years ago. Today, TCL has built an extensive local network encompassing three partner factories, nine warehousing centres, reaching 17 cities, and more than 1,250 retail partner outlets. This success is inseparable from thorough localisation in product development, organisation and human resources. TCL develops television and air conditioning products specifically designed to suit Indonesia’s climate conditions. Furthermore, only 13 TCL staff members are from China, while more than 1,000 others are local employees, including an Indonesian chief executive officer. “We have truly taken root and integrated with Indonesia,” said Deng.
Pan Yue, deputy director of the Indonesia studies centre at Jinan University in Guangdong Province, identified two promising sectors for future investment. The first is deep processing in the downstream new energy sector, covering electric vehicle battery materials, energy storage equipment and new energy vehicles. The second is consumer-oriented light manufacturing, including smart home appliances, building ceramics and consumer electronics. “Indonesia’s ongoing urbanisation and the rising purchasing power of the middle class create stable market demand for these products. Both sectors align closely with Guangdong’s industrial strengths,” Pan added.
The company specialises in providing charging solutions for electric cars and two-wheeled vehicles. It has installed integrated solar power, energy storage and charging stations in West Jakarta, and has established cooperation with several local Indonesian two-wheeler manufacturers. The company plans to build approximately 500 similar integrated charging stations in Indonesia starting October this year to serve tens of thousands of electric motorcycles. Its fast-charging technology addresses one of the main consumer obstacles. While conventional electric motorcycles require five to six hours to fully charge, the company’s solution can fully charge in half an hour with a range of up to 150 kilometres.