In May 2022, Indonesia’s new vehicle market declined “by almost 10% to 49,453 units compared to 54,815 units in 2021” as per the Just Auto report from June 15, 2022. A report from 14th June 2022 by Lowy Institute indicates that “In 2021, the ASEAN Automotive Federation reported more than 659,000 passenger vehicle sales in Indonesia”. As per the report by Just Auto, “total vehicle sales in the first five months of 2022 were up by 23.5% at 396,153 units from 320,749 units in 2021; with passenger vehicle sales rising by just over 24% to 294,014 units while commercial vehicle sales increased by 22% to 102,139 units. Most passenger cars in Indonesia are typically new and depend on coal as its fuel source. To elaborate upon this, the report by Lowy Institute emphasizes “The primary electricity grid in Indonesia for passenger vehicles is heavily reliant on coal and not yet ready to generate the extra power required, especially from renewable sources, with intermittency causing grid instability.”
The Just Auto report, sales per passenger vehicle type, mentioned Toyota, Daihatsu, Honda, Mitsubishi, and Suzuki. Toyota “reported a sales rise of close to 24% to 122,170 units in the first five months of 2022; driven by the new popular Avanza compact MPV, the Raize small crossover vehicle and the new Rush compact SUV”. Sales for Daihatsu “increased by almost 24% to 73,418 units, driven by the Rocky small crossover vehicle, the new Terios compact SUV and the new Xenia”. For Honda, “sales increased by 35% to 53,528 units, helped by the recent launch of the BR-V and Mobilio compact MPVs”. Sales for Mitsubishi “increased by over 13% to 46,596 units due to its upgraded Xpander and Xpander Cross models”. For Suzuki, “sales were just 3% higher at 34,198 units due to the launch of the new Ertiga hybrid in June 2022”.
The Lowy Institute report highlights a locally manufactured electric vehicle in Indonesia. Here, the Lowy Institute report mentions “In March, President Joko Widodo helped launch Indonesia’s first locally made electric vehicle – the IONIQ 5 – at a ceremony for a new automotive plant operated by the Hyundai Motor Group. The IONIQ5 is the first battery electric vehicle produced in the country, to supply the domestic and export EV market.” Indonesia has established a target for increasing the number of electric vehicles by 2030. In this regard, the TEMP.CO news report from 29th June 2022 mentions “The Indonesian Ministry of Investment’s Deputy of Investment Planning Indra Darmawan, said on Wednesday, June 29, 2022, that Indonesia has set an ambitious goal to raise the market share of electric vehicles in Indonesia to 25 percent of total vehicle sales in 2030.” To emphasize the number of EVs on road in Indonesia, the TEMP.CO news article mentions “Citing data from the Ministry of Transportation, there are already 16,000 electric cars in Indonesia, which Indra Darmawan insists is higher compared to its Southeast Asian neighbours”.
Indonesia’s passenger vehicles contributed to an increase in carbon dioxide emission levels from 2010 to 2015. Here, a research paper emphasizes “The CO2 emissions profile shows a gradual increase from 2010 to 2015. About 95% of the total emissions were from gasoline cars, and the remainder were from diesel cars. In 2015, CO2 emissions from passenger vehicles were 23 million tons” (Erahman et.al. 2019). In terms of CO2 emissions intensity per car activity, there was a slight decline from 2010 to 2015. In this respect, the research paper by Erahman et.al. 2019 indicates “In 2010, the CO2 emissions intensity per car activity was 207 g CO2 /km, while in 2015 it decreased to 198 g CO2/km”. The research paper by Erahman et.al determined that CO2 emissions generated from passenger vehicles in Indonesia are expected to increase significantly by 2050. Here, the research paper stresses “The BAU scenario projections show that in 2050, tCO2 emissions will reach 110 million tons, which is about 4.3 times higher than in 2015. CO2 emissions as per the car technology and fuel tax scenarios will reach 93 and 107 million tons in 2050”. Furthermore, the research paper elaborates that “In 2050, the values for CO2 emissions intensity per car activity for the BAU and car technology scenarios are 145 and 114 g CO2/km” (Erahman et.al. 2019).
To reduce greenhouse gas emissions generated by passenger vehicles in Indonesia, the government is currently looking to “incentivise vehicles based more on emissions levels, with electric vehicles enjoying full luxury tax holidays and hybrids also benefiting from significant tax discounts”. The Just Auto report also indicates that a “luxury tax discount of 66% on passenger vehicles costing up to IDR200m (US$13,660), comprising mostly Low-Cost Green Cars (LCGC), has been put in place for the second quarter, to be reduced to 33% in the third quarter”. Furthermore, the Just Auto report highlights that “tax discounts have also been made available for passenger vehicles with engines up to 1,500cc and costing between IDR200m and IDR250m”.
Data available regarding the production, usage, and emissions of passenger cars are provided annually and are generated from the Ministry of Transportation, Indonesia along with The Association of Indonesia Automotive Industries GAIKINDO (Gabungan Industri Kendaraan Bermotor Indonesia). Other international agencies such as the OICA, Auto Traders, and Allied Market Research also provide data regarding passenger vehicles in Indonesia. These data are cross-checked, updated, and revised regularly to ensure accuracy and reliability.
Learn More References
To know more about passenger vehicle fleets in Indonesia, please visit the Just Auto report at:
To know more about Electric Vehicles in Indonesia, please visit the report by Lowy Institute at:
To know more about the target established by Indonesia for boosting electric vehicles, please visit the TEMP.CO news report at:
To know more about the research paper titled “Modeling Future Energy Demand and CO2 Emissions of Passenger Cars in Indonesia at the Provincial Level” by Erahman et.al. 2019 please visit:
This Post was submitted by Climate Scorecard Indonesia Country Manager Neebir Banerjee