Thursday, August 6, 2026
OTOJATIM - Indonesia's debate over electric vehicle technology is losing momentum. Market trends show that consumers are no longer focusing on a single solution, as battery electric vehicles (BEV), hybrid electric vehicles (HEV), and plug-in hybrid electric vehicles (PHEV) are all gaining traction based on individual driving needs and usage patterns.
"The simultaneous growth of all three electrification technologies (BEV, HEV and PHEV) shows that consumers are choosing the technology that best suits their personal needs and driving patterns, rather than selecting one technology as the superior option," said Josua Pardede, Chief Economist of Permata Bank, during the Indonesia Center for Mobility Studies (ICMS) National Automotive Dialogue at GAIKINDO Indonesia International Auto Show (GIIAS) 2026.
His statement captured the main conclusion of the forum titled The Right Fit for Indonesia: What Kind of Electrification Technology Does Indonesia Need? The discussion brought together representatives from Japanese and Chinese automakers, economists, academics, and automotive observers to examine the future direction of vehicle electrification in Indonesia.
ICMS Chairman Munawar Chalil said the industry should move beyond debating which technology is the most advanced. Instead, the focus should be on identifying the technology—or combination of technologies—that best matches Indonesia's diverse market conditions.
"Indonesia does not need a debate about which technology is superior. What we need is to find the technology, or even the combination of technologies, that is the best fit for Indonesia. That is the spirit behind this forum," Munawar Chalil said.
The market data supports that view. During the first half of 2026, sales of electrified passenger vehicles increased by around 68 percent compared with the same period a year earlier. Their market share also climbed from 23 percent to 38 percent, indicating that Indonesia's transition toward electrified mobility is accelerating faster than previously expected.
Economic conditions are also influencing buying decisions. Josua Pardede explained that Indonesian households are allocating a larger share of their budgets to essential expenses such as health insurance, internet services, utilities, and taxes. As a result, consumers are becoming more selective when purchasing high-value products, including new vehicles.
That explains why different electrification technologies continue to attract different customer groups. Some drivers prefer BEVs for their lower operating costs and daily urban commuting, while others choose HEVs or PHEVs because they better suit longer travel distances or regions where charging infrastructure is still developing. The simultaneous growth of these technologies reflects practical consumer choices rather than a winner-takes-all competition.
The ICMS forum also explored market development, charging infrastructure, consumer behavior, and policy priorities that could shape Indonesia's automotive industry in the years ahead. Organizers hope the discussion will provide valuable input for future mobility policies tailored to Indonesia's unique market characteristics.
 |
| ICMS Chairman Munawar Chalil: Industry leaders at the ICMS National Automotive Dialogue agreed that Indonesian consumers are choosing electrification technologies based on their mobility needs. |
His statement captured the main conclusion of the forum titled The Right Fit for Indonesia: What Kind of Electrification Technology Does Indonesia Need? The discussion brought together representatives from Japanese and Chinese automakers, economists, academics, and automotive observers to examine the future direction of vehicle electrification in Indonesia.
ICMS Chairman Munawar Chalil said the industry should move beyond debating which technology is the most advanced. Instead, the focus should be on identifying the technology—or combination of technologies—that best matches Indonesia's diverse market conditions.
"Indonesia does not need a debate about which technology is superior. What we need is to find the technology, or even the combination of technologies, that is the best fit for Indonesia. That is the spirit behind this forum," Munawar Chalil said.
The market data supports that view. During the first half of 2026, sales of electrified passenger vehicles increased by around 68 percent compared with the same period a year earlier. Their market share also climbed from 23 percent to 38 percent, indicating that Indonesia's transition toward electrified mobility is accelerating faster than previously expected.
Economic conditions are also influencing buying decisions. Josua Pardede explained that Indonesian households are allocating a larger share of their budgets to essential expenses such as health insurance, internet services, utilities, and taxes. As a result, consumers are becoming more selective when purchasing high-value products, including new vehicles.
That explains why different electrification technologies continue to attract different customer groups. Some drivers prefer BEVs for their lower operating costs and daily urban commuting, while others choose HEVs or PHEVs because they better suit longer travel distances or regions where charging infrastructure is still developing. The simultaneous growth of these technologies reflects practical consumer choices rather than a winner-takes-all competition.
The ICMS forum also explored market development, charging infrastructure, consumer behavior, and policy priorities that could shape Indonesia's automotive industry in the years ahead. Organizers hope the discussion will provide valuable input for future mobility policies tailored to Indonesia's unique market characteristics.