Indonesia’s Vehicle Electrification Growth Supports Net Zero Target

RRI.CO.ID, Jakarta - Indonesian Minister of Industry, Agus Gumiwang Kartasasmita, said the development of vehicle electrification in Indonesia has shown a positive and significant trend. He made the statement during the Opening Ceremony of the Indonesia International Motor Show (IIMS) 2026 in Jakarta, Wednesday, 5 February 2026.

Agus noted that sales of Battery Electric Vehicles (BEV) recorded a sharp increase from 43,000 units to 103,000 units. “In addition, Hybrid Electric Vehicle (HEV) sales grew by 15 percent,” he said.

Meanwhile, sales of Plug-in Hybrid Electric Vehicles (PHEV) saw a remarkable surge throughout 2025. Agus said PHEV sales jumped from 74 units in 2024 to 5,235 units in 2025.

According to Agus, the trend reflects a significant shift toward more environmentally friendly vehicles. “This development is in line with the Indonesian government’s commitment to achieving net zero emissions by no later than 2060,” he said.

He added that the government has set a more ambitious target for the manufacturing sector. “For the manufacturing sector, we have set a target to achieve net zero emissions ten years earlier, by 2050,” Agus said.

Moreover, Agus also underscored that the government already has a roadmap and strategies in place to reach the target. “Vehicle electrification is one of the strategic solutions to reduce greenhouse gas emissions and improve air quality, particularly in urban areas,” he said.

From an investment perspective, Agus said Indonesia’s electric vehicle battery ecosystem continues to strengthen with the operation of PT HLI Green Power, which has an initial installed capacity of 10 GWh. He added that several battery pack manufacturers are also operating, supported by foreign investment totalling USD 5.9 billion, or approximately Rp96 trillion.

In addition, Agus said the integrated battery industry projects are expected to generate economic value of up to USD 48 billion. The government hopes the growth in vehicle electrification will continue in line with Indonesia’s commitment to green industrial development and the transition toward a low-carbon economy.