Indonesia electric boat market report size, share, growth drivers, trends, opportunities & forecast 2025–2030

Indonesia Electric Boat Market Overview

• The Indonesia Electric Boat Market is valued at USD 1.1 billion, based on a five-year historical analysis. This growth is primarily driven by increasing environmental awareness, government initiatives promoting sustainable transportation, and advancements in battery technology. Notable drivers include stricter environmental regulations, the expansion of marinas with electric charging infrastructure, and the growth of urban water transport networks. The rising demand for eco-friendly alternatives in maritime transport continues to significantly contribute to the market's expansion.
• Key players in this market are concentrated in major coastal cities such as Jakarta, Surabaya, and Bali. These regions dominate due to their strategic locations for tourism and commercial activities, as well as the presence of significant marine resources. The growing interest in recreational boating and fishing in these areas further enhances their market position.
• The Indonesian government enacted theMinister of Transportation Regulation No. 13/2023(“Peraturan Menteri Perhubungan Republik Indonesia Nomor 13 Tahun 2023 tentang Standar Teknis Kapal Berpenggerak Listrik”) issued by the Ministry of Transportation in 2023. This regulation mandates that new commercial vessels above 15 meters in length must incorporate electric or hybrid propulsion systems, effective from 2025. The regulation covers technical standards, compliance requirements for vessel registration, and operational safety thresholds, aiming to reduce greenhouse gas emissions and promote renewable energy use in the maritime sector.

Indonesia Electric Boat Market Segmentation

By Type:The market is segmented into various types of electric boats, including Solar Electric Boats, Battery Electric Boats, Hybrid Electric Boats, and Others. Among these,Battery Electric Boatsare currently leading the market due to their efficiency and widespread adoption in both recreational and commercial sectors. The increasing availability of advanced lithium-ion and solid-state battery technologies has made these boats more appealing to consumers, driving their popularity.

By End-User:The end-user segmentation includes Recreational (Tourism & Leisure), Commercial (Fishing & Transport), Government & Public Services (Patrol, Research, Ferry), and Industrial (Port & Logistics). TheRecreational segmentis currently the most dominant, driven by the growing tourism sector in Indonesia. The increasing interest in leisure activities and eco-friendly tourism options has led to a surge in demand for electric boats in this category.

Indonesia Electric Boat Market Competitive Landscape

The Indonesia Electric Boat Market is characterized by a dynamic mix of regional and international players. Leading participants such as PT Kapal Listrik Internasional, PT Tanoto Shipyard, PT Tehnik Kapal Indonesia, Aruna Studio Marine Design & Consultant, PT Sam Horison, PT Volto Sea, PT Azura Indonesia, PT Pandu Laut Nusantara, PT Comestoarra Bentarra Noesantarra, PT Lundin (North Sea Boats), PT Marina Development Indonesia, PT Pelindo, PT PLN (Persero), PT Pupuk Sriwijaya Palembang, PT Gempacs contribute to innovation, geographic expansion, and service delivery in this space.

Indonesia Electric Boat Market Industry Analysis

Growth Drivers

• Increasing Environmental Awareness:The Indonesian population is becoming increasingly aware of environmental issues, with 70% of citizens expressing concern about climate change impacts. This awareness drives demand for electric boats, which produce zero emissions compared to traditional vessels. The government aims to reduce greenhouse gas emissions by 29% in future, further encouraging the adoption of eco-friendly transportation solutions. As a result, electric boats are positioned as a sustainable alternative, appealing to environmentally conscious consumers and businesses alike.
• Government Initiatives and Subsidies:The Indonesian government has allocated approximately IDR 1 trillion (around USD 70 million) for the development of electric vehicle infrastructure, including electric boats. This funding supports research and development, manufacturing, and subsidies for consumers purchasing electric boats. Additionally, the government has set a target of having 20% of all marine vessels be electric in future, creating a favorable regulatory environment that incentivizes investment in the electric boat sector.
• Technological Advancements in Battery Systems:Recent advancements in battery technology have significantly improved the performance and affordability of electric boats. For instance, lithium-ion battery costs have decreased by approximately 89% since 2010, making electric propulsion systems more accessible. In future, the average cost of a lithium-ion battery is projected to be around USD 100 per kWh, enhancing the feasibility of electric boats. These innovations not only increase the range and efficiency of electric boats but also attract manufacturers to invest in this growing market.

Market Challenges

• High Initial Investment Costs:The initial investment required for electric boats remains a significant barrier to market entry. The average cost of an electric boat can range from IDR 500 million to IDR 1 billion (approximately USD 35,000 to USD 70,000), which is substantially higher than traditional boats. This financial hurdle limits adoption among small operators and individual consumers, who may find it challenging to justify the upfront costs despite long-term savings on fuel and maintenance.
• Limited Charging Infrastructure:The lack of adequate charging infrastructure poses a significant challenge for the electric boat market in Indonesia. Currently, there are only about 50 charging stations for electric boats across the archipelago, which is insufficient to support widespread adoption. The government plans to increase this number, but the slow rollout of charging facilities may hinder growth. Without a robust network of charging options, potential users may be reluctant to transition from traditional vessels to electric alternatives.

Indonesia Electric Boat Market Future Outlook

The future of the electric boat market in Indonesia appears promising, driven by increasing environmental awareness and supportive government policies. As the tourism sector expands, the demand for eco-friendly transportation options is expected to rise. Additionally, technological advancements in battery systems will likely enhance the performance and affordability of electric boats. With ongoing investments in infrastructure and a growing focus on sustainability, the market is poised for significant growth in the coming years, attracting both local and international players.

Market Opportunities

• Expansion of Tourism Sector:Indonesia's tourism sector is projected to reach IDR 300 trillion (approximately USD 21 billion) in future, creating a substantial opportunity for electric boats in eco-tourism. As travelers increasingly seek sustainable experiences, electric boats can cater to this demand, offering environmentally friendly transportation options in popular tourist destinations like Bali and Komodo National Park.
• Development of Electric Boat Manufacturing:The Indonesian government is encouraging local manufacturing of electric boats, with plans to establish at least three major production facilities in future. This initiative aims to create jobs and reduce reliance on imports. By fostering local production, the market can benefit from reduced costs and increased innovation, positioning Indonesia as a regional hub for electric boat manufacturing.