The rapid growth in global electric vehicle (EV) adoption is creating fresh investment landscapes, especially in Southeast Asia. The collaboration between India and Indonesia offers a unique window of opportunity for growth. By doing business with Indian firms, Indonesian companies can tap into India’s EV momentum and implement it in Indonesia’s evolving market.
India’s EV boom: The fastest growing sector in 2025
India’s EV sector is experiencing notable growth, making it one of the fastest-growing industries in 2025. According to recent reports, India’s EV market is expected to grow 66% by 2029, reaching a staggering US$114 billion. This market is dominated by two-wheelers, which account for 90% of total EV sales. Several factors contribute to this growth, including FAME II, rising fuel costs, and tax deductions.
Indian EV businesses are expanding aggressively, creating opportunities for Indonesian firms to doing business with Indian and grow together, fostering mutual success.
Untapped EV opportunities in Indonesia’s market
With Indonesia’s rich nickel reserves, doing business with Indian EV manufacturers can be a strategic move to unlock new growth opportunities in the evolving market.
Build Battery Factories Together
Indonesia has lots of nickel, but not enough local battery factories. Indian firms can team up with Indonesian partners to build battery plants and share their expertise.
Make EV Parts Locally
Key EV components, such as motors and controllers, are still mostly imported. Indian manufacturers can help Indonesia by setting up local production and bringing cost-effective solutions.
Create Low-Cost EVs
Indonesia needs affordable electric scooters, bikes, and public transport options. Indian EV makers already build these for similar markets and can easily adapt them for Indonesian roads.
Share EV Technology
Indian companies can work with Indonesian partners to develop better batteries, chargers, and innovative mobility solutions. This helps speed up local innovation.
Read more: Exploring opportunities from the largest nickel reserves in Indonesia.
Why Indonesia needs more EV development
Indonesia is on the path to becoming an EV powerhouse, but it needs more substantial support to reach its full potential. This is where doing business with Indian manufacturers is essential to fill the gaps:
1. Heavy Reliance on Imports
Most EV components in Indonesia are imported, which raises costs and delays production. By building local manufacturing with Indian partners, Indonesia can reduce this dependency and gain more control over its supply chain.
2. Weak Downstream Industry
While Indonesia has rich raw materials such as nickel, downstream industries, including refining, battery assembly, and advanced technologies, remain underdeveloped. Indian firms with battery tech and supply chain knowledge can bridge this gap.
3. Rising Domestic EV Demand
Indonesia is seeing fast growth in EV demand, with projections of over 600,000 EVs on the road by 2030. But local production isn’t keeping up. More factories, suppliers, and tech providers are urgently needed.
Doing business with Indian EV firms will help Indonesia unlock the full potential of its EV market. This strategic move can drive a more substantial economic impact through increased job creation, exports, and the transfer of advanced technologies.
Why Indian businesses should invest in Indonesia’s EV sector
For Indian firms looking to expand, Indonesia offers a promising environment for the EV business. Here’s why investing now is a smart move:
Strong Trade Agreements
Indian businesses benefit from favorable trade terms with Indonesia under these frameworks:
- India-ASEAN Free Trade Agreement (FTA): Provides lower import and export duties, easier access to the ASEAN market, and trade boosts.
- India-Indonesia Economic and Financial Dialogue (EFD): Promotes policy alignment and joint initiatives in energy, transportation, and clean energy.
These agreements create a safe and profitable space for Indian investors.
Easy Business Setup and Fast Licensing
Indonesia has made significant improvements that have made it easier to start a business. As Indonesia ranks 73rd globally in ease of doing business, the government has created a positive environment for contract procurement, tax payments, and cross-border trade.
One of the licensing initiatives is One Single Submission (OSS). This procedure makes business registration fast and digital. What used to take weeks now takes hours. Key benefits include:
- Simplified permits and licenses
- Faster company setup through web-based registration
- Full government support for foreign investors
For Indian EV firms, leveraging a trust agent like InCorp can help streamline the business setup and licensing process, ensuring a hassle-free start from the very first step.
Read more: How a company registration consultant can save time and money.
Start your EV business in Indonesia today
Indonesia’s EV sector is growing fast, and now it’s the perfect time for Indian firms to take the lead. But to succeed, you need proper local support.
InCorp Indonesia (an Ascentium Company) provides a complete solution to launch and grow your EV business with confidence:
- Company Registration: Get your business up and running quickly with expert guidance, ensuring full legal compliance and minimal delays.
- Investor KITAS: We handle all the paperwork so you can stay focused on building your business.
The future of Indonesia’s EV industry is bright. Partner with us today and unlock a smooth and profitable business in Indonesia.
Frequently Asked Questions
Why does Indonesia need more EV development?
Indonesia relies heavily on imported EV components and lacks strong downstream industries like battery assembly. Local production needs to grow to meet rising EV demand.
How can Indian manufacturers support Indonesia’s EV sector?
Indian firms can help reduce import dependence, strengthen battery and supply chain capabilities, and accelerate local EV manufacturing growth.
Why should Indian businesses invest in Indonesia’s EV industry now?
Indonesia offers strong market demand, favorable trade agreements, and government-backed incentives that make EV investment highly attractive.
Is it easy for Indian companies to set up an EV business in Indonesia?
Yes. Indonesia’s OSS (Online Single Submission) system allows fast, digital business registration, making setup quicker and more efficient for foreign investors.
How can InCorp support Indian investors entering Indonesia’s EV market?
InCorp assists with company registration, licensing, Investor KITAS, and regulatory compliance to ensure a smooth, fully compliant market entry.
Get in touch with us.
What you'll get
A prompt response to your inquiry
Knowledge for doing business from local experts
Ongoing support for your business
Disclaimer
The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.
We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.
Verified by
Ales Cina
Consulting Manager at InCorp Indonesia
Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights.
