Indonesia is getting increasingly serious about becoming a key electric vehicle (EV) hub in Southeast Asia. The government has set an ambitious target of selling 100,000 electric cars domestically this year, as part of its broader push to accelerate the transition to eco-friendly vehicles and boost the growth of the EV industry.
Rachmat Kaimuddin, Deputy for Basic Infrastructure Coordination at the Coordinating Ministry for Infrastructure and Regional Development, is confident the goal is within reach. Based on recent sales data, EV sales in the first quarter of 2025 alone have already reached around 16,000 units.
“Last year, EV sales reached 43,188 units. This year, in just the first quarter, we’ve already hit 16,000. We’re optimistic that we can hit 100,000 units by the end of the year, which would be around 10 percent of total car sales nationwide,” Rachmat said during an interview in Central Jakarta on Thursday (April 24, 2025).
He noted that reaching 10 percent of national sales could serve as a turning point for Indonesia’s EV industry. This kind of momentum, he said, could lead to rapid growth in the years to come, similar to what has happened in China, now the largest EV market in the world.
“Look at China, once they hit a 10 percent market share, growth skyrocketed by 20 to 40 percent annually. We hope to see a similar trend take shape in Indonesia,” he added.
Indonesia’s ambition to become an EV hub is backed by the strong potential of its automotive industry. With an annual production capacity of 1.4 million vehicles and 500,000 units exported each year, the country is well-positioned to become a regional manufacturing center for electric vehicles. According to Rachmat, the next step is ensuring the market and regulations support a full-scale transition to EVs.
“We’re working to encourage both existing players and new entrants to make the switch to EVs. Of course, they need to be confident that the market is ready and the regulatory framework is in place. The data shows that BEV (Battery Electric Vehicle) sales have been rising steadily year over year,” Rachmat said.
In the past two months, February and March 2025, wholesale EV sales saw a significant spike, even surpassing hybrid vehicle sales, which have typically led the market. Gaikindo data shows that EV sales reached 16,535 units in the first quarter of 2025, compared to 13,957 hybrid vehicles sold during the same period.
By continuing to invest in EV development, Indonesia hopes to solidify its position as a future electric vehicle hub, in line with growing demand and support from various sectors.
