The Fate of Electric Cars in Indonesia: When Can They 'Dominate' the Roads Like in China?

The electric vehicle market in Indonesia is increasingly gaining traction. Sales growth in the first half of 2026 shows that electrified cars are no longer just an alternative choice, but are beginning to take a significant share of the national automotive market. In fact, within the next few years, it could resemble China, where electric cars hold a 60% market share.

Senior automotive observer Bebin Djuana believes that the sustainability of government policy is a crucial factor in maintaining this momentum. The industry requires certainty so that both manufacturers and consumers have the confidence to continue entering and using electric vehicles.

"If it can be consistent, even with a change of government, it is not impossible that by 2030 EV sales could reach 50-60%, accompanied of course by ecosystem growth, because what has been achieved now is just the beginning, a good foundation towards a larger EV volume," Bebin told CNBC Indonesia on Thursday (13/8/2026).

However, the challenge for the industry is not just about boosting short-term sales. Policy consistency must also be maintained during a change of government so that investment and the development of the electric vehicle ecosystem do not lose direction again.

The magnitude of this market opportunity makes the target for EV penetration in the coming years increasingly attainable. Moreover, the choice of electrified vehicles is now growing with the presence of various new brands and models offering a wide range of prices and technologies.

"Government consistency is the basis for the transition from fossil-fuel vehicles to battery-powered vehicles," said Bebin.

According to data from the Association of Indonesian Automotive Industries (Gaikindo), sales of electrified vehicles throughout January-June 2026 reached 117,108 units. This figure is equivalent to 26.8% of total national car sales. The increase is also evident in pure battery electric vehicle (BEV) sales. In the first half of 2026, BEV sales reached 69,739 units, or about 15.9% of the total market.

"When the government creates regulations that help the public switch to EVs, all parties, including producers and consumers, will certainly respond positively," Bebin concluded.