AC Ventures And AEML Release Reports On Electric Vehicle Development, Extraordinary Investment Potential

AC Ventures (ACV), a venture capital company in Indonesia, together with the Electric Mobility Ecosystem Association (AEML), recently released a report that provides a positive view on the development of electric vehicles in Indonesia.

The report entitled "Indonesia's Electric Vehicle Outlook: Supercharging Tomorrow's Mobility" received positive support from various parties who were also involved in the development of electric vehicles in Indonesia, including the Coordinating Minister for Maritime Affairs and Investment in Indonesia, Luhut Binsar Pandjaitan, Minister of Industry, Agus Gumiwang Kartasasmita, Minister of Transportation, Budi Karya Sumadi, and Dannif Utojo Danusaputro as Chairperson of AEML and CEO of Pertamina New and Renewable Energy.

Helen Wong, Managing Partner ACV, said that the report was based on the rapid growth of the electric vehicle market in Indonesia. This report also confirms that there are very promising investment opportunities. Furthermore, Indonesia is working to develop the use of sustainable energy in electric vehicles.

"In our capacity as an investment company that is becoming a pioneer in this sector, we are committed to fostering strategic cooperation that can exceed Indonesia's renewable energy target, creating a more environmentally friendly future with lower emissions and better sustainability," Wong said in a statement on Monday, July 3.

Dannif Utojo Danusaputro, Chairman of AEML, added the importance of cooperation with the Indonesian government, international organizations, and other associations in promoting electric vehicles in Indonesia to achieve future sources of emission-free energy. AEML is committed to supporting electric vehicle adoption and encouraging the development of an electric vehicle ecosystem that can compete globally. Dannif is also proud to be able to release this comprehensive report with AC Ventures.

In the report, it was conveyed the rapid development of electric vehicles in Indonesia with market potential reaching more than 20 billion US dollars or around Rp. 299.8 trillion, although the current use of electric vehicles is still limited.

Electric vehicles in Indonesia offer a higher efficiency of 75 percent and lower operational costs for businesses. This provides tremendous potential for the electric mobility market in the country to grow with an average annual growth rate (CAGR) of 58.5 percent by 2030.

Currently, electric motors only have a market share of 0.2 percent of the total motorcycle market in Indonesia. However, this report shows that there is an opportunity to increase the market share of electric vehicles to more than 10% in the next five years, assuming effective cooperation between stakeholders and the private sector in encouraging the development of local electric vehicles.

The study also explores and analyzes various topics, particularly those related to infrastructure development, local production, sales, public sentiment, industrial dynamics, supply chains, as well as policies and related regulations.

Indonesia has set an ambitious target in the renewable energy sector. Before reaching zero emissions (NZE) by 2060, the government is trying to increase the proportion of renewable energy to 23 percent of the country's total energy composition by 2025.

In addition, Indonesia also has a vision to make a wider national energy transition by stopping the production of gasoline and diesel-fueled vehicles by 2050 and is expected to be completed by 2056.

Although the electric vehicle market in Indonesia is still in its early stages, the trend of the development of electric vehicles shows a positive trend and is expected to continue to grow along with technological advances in the coming years.