Indonesia E-bikes Market Outlook to 2030

Indonesia E-bikes Market Overview

• The Indonesia E-bikes market is valued at USD 158 million, driven by increased urbanization, rising environmental concerns, and government incentives promoting the use of electric vehicles. The surge in fuel prices and the growing awareness of sustainable mobility options have further fueled the adoption of E-bikes. These factors, along with advancements in battery technology and expanding charging infrastructure, are expected to maintain steady demand, making E-bikes a preferred choice for urban commuting in the country.
• The market is dominated by cities such as Jakarta, Surabaya, and Bandung. Jakarta, being the capital city, leads due to its high population density and traffic congestion, pushing the need for affordable and efficient personal transportation. Surabaya and Bandung follow closely due to their industrial growth, higher disposable incomes, and increased focus on reducing air pollution. The strong presence of key manufacturers and infrastructure development in these regions also contribute to their dominance in the market.
• Indonesia imposes import tariffs on various e-bike components, including batteries and motors, which can drive up production costs. However, the government has reduced these tariffs to stimulate local production and make e-bikes more competitive in the domestic market. According to the Ministry of Trade, in 2024, tariffs on electric bike components have been reduced by 20%, making it more affordable for local manufacturers to source the necessary materials and parts.

Indonesia E-bikes Market Segmentation

• By Battery Type: The Indonesia E-bikes market is segmented by battery type into Lithium-ion battery, Lead-acid battery, and Others (Nickel-Cadmium, Solid-state). Among these, Lithium-ion batteries dominate the market share due to their superior energy density, longer lifespan, and faster charging times. Lithium-ion batteries also offer better performance and efficiency, making them the preferred choice for urban commuters who rely on long-range, low-maintenance E-bikes. The reduction in lithium-ion battery prices over recent years has further boosted their adoption, outpacing traditional lead-acid batteries.

• By Mode of Operation: The E-bikes market in Indonesia is also segmented by mode of operation into Pedal-assist and Throttle-assist. Pedal-assist models hold the dominant market share due to their higher energy efficiency and widespread appeal among consumers who seek a balance between traditional cycling and electric-powered assistance. Pedal-assist bikes are favored by commuters for their ability to cover longer distances without exerting too much physical effort. This hybrid functionality makes them particularly popular in traffic-congested cities, where riders can switch between manual pedaling and motor assistance as needed.

Indonesia E-bikes Market Competitive Landscape

The Indonesia E-bikes market is dominated by a few key players, both domestic and international, who have established themselves through strong distribution networks and continuous innovation. The market shows a growing trend of strategic partnerships between E-bike manufacturers and battery suppliers, aiming to improve battery efficiency and reduce costs. This competitive consolidation highlights the influence of these key players in shaping market trends.

Indonesia E-bikes Industry Analysis

Growth Drivers

• Growing Environmental Concerns: Indonesia's government is actively working to reduce emissions, driven by its commitments to the Paris Agreement and ongoing environmental concerns. According to the Ministry of Energy and Mineral Resources, transportation accounts for 25% of Indonesia's carbon emissions. E-bikes offer a green alternative to petrol-powered vehicles, helping to mitigate environmental damage. The promotion of electric vehicles (EVs) is now part of Indonesia's green mobility strategies. In 2024, e-bikes represent a key part of this shift towards sustainable transport solutions, encouraging further adoption.
• Government Support for Electric Vehicles: The Indonesian government has implemented a series of incentives to promote the use of electric vehicles, including e-bikes. Policies include reduced taxes and direct subsidies for electric vehicle purchases, as outlined by the Ministry of Industry. For 2024, Indonesia has allocated nearly IDR 5 trillion to support the adoption of EVs, providing citizens with financial relief for purchasing e-bikes. This initiative is in line with the countrys goal to electrify 20% of its transport sector by 2025.
• Increasing Demand for Affordable Personal Transport: As economic conditions fluctuate, many Indonesians seek more cost-effective personal transportation. E-bikes have become popular due to their low operational costs and the fact that they do not require petrol. With a minimum wage in Jakarta around IDR 4.6 million per month, e-bikes offer an attractive alternative to conventional vehicles for individuals in lower-income brackets. E-bikes also reduce transportation costs by nearly 60% compared to motorcycles, contributing to their rising demand among urban dwellers.

Market Restraints

• Lack of Charging Infrastructure: One of the main barriers to e-bike adoption in Indonesia is the insufficient charging infrastructure. As of 2024, there are only 500 public EV charging stations across the country, mainly concentrated in major cities, according to the Ministry of Energy and Mineral Resources. This poses a significant challenge for widespread adoption in suburban and rural areas. The governments plan to expand this infrastructure by 2030 aims to address this gap, but for now, limited access to charging remains a challenge.
• High Initial Costs Compared to Conventional Bikes: E-bikes require a higher upfront investment than conventional bikes, which is a deterrent for some consumers. According to data from the Indonesian Bureau of Statistics, an average e-bike costs between IDR 8 million and IDR 20 million, depending on its features, while a conventional motorcycle can be purchased for as little as IDR 4 million. These higher upfront costs slow down adoption, particularly among lower-income segments that may not benefit from government subsidies.

Indonesia E-bikes Market Future Outlook

Over the next few years, the Indonesia E-bikes market is expected to experience significant growth, driven by increasing government support for electric vehicles, advancements in battery technology, and growing consumer demand for cost-effective and eco-friendly transportation solutions. The expansion of urban infrastructure and the rising trend of shared mobility platforms will further boost the adoption of E-bikes. With the integration of smart features and the expansion of e-commerce platforms for E-bike sales, the market is set to evolve rapidly, with new opportunities emerging in suburban and rural areas.

Market Opportunities

• Advances in Battery Technology: Significant progress in battery technology has opened new possibilities for the e-bike market in Indonesia. New-generation lithium-ion batteries, which are lighter and more efficient, are being developed by local companies. these innovations could extend the average e-bike range by up to 30%, improving their appeal to a broader audience. In 2024, technological advancements are expected to lower maintenance costs and increase battery life, providing greater convenience and cost savings to consumers.
• Entry into Rural and Suburban Markets: Rural and suburban regions in Indonesia present a significant growth opportunity for e-bike manufacturers. While e-bike penetration has been limited in these areas due to charging and infrastructure issues, government initiatives to expand charging networks are making these regions more accessible. According to the Ministry of Rural Development, more than 35% of the population lives in rural areas, highlighting untapped potential for e-bike adoption. E-bikes, with their lower operational costs, offer a practical alternative to motorcycles in these communities.