The role of domestic solutions and international cooperation

President Prabowo Subianto recently announced plans to accelerate Indonesia’s net-zero emissions target by 2050, a decade earlier than the target set by his predecessor Joko “Jokowi” Widodo. Electric vehicles (EVs) and e-mobility technologies will play a key role in this transition.

Indonesia boasts the third largest motorcycle market in the world, with almost 130 million motorcycles on its roads. However, emissions from these vehicles significantly affect air quality and contribute to climate change. To address this problem, Indonesia aims to have 13 million electric two-wheelers on the streets by 2030. This ambitious initiative is expected to reduce greenhouse gas emissions and air pollution while promoting green commuting.

Indonesia also has the potential to become a leading manufacturing hub for electric vehicles in ASEAN, especially two-wheelers. This includes understanding the evolving EV charging ecosystem and dynamic government incentive policies that support the local EV industry.

To achieve decarbonization, Indonesia is focusing on two key areas: electrification of transport and transition to clean electricity. Despite the challenges, Indonesia has the potential to overcome them. The country’s goal of becoming an electric vehicle hub is supported by its rich natural resources, especially nickel, which is needed to produce electric vehicle batteries.

Founded in 2018, SAVART Motors is a local brand with in-house research and development (R&D) capabilities, prototyping facilities, and a dedicated testing and production facility in Mojokerto, East Java. The company specializes in developing electric scooters that meet the requirements of local road conditions, riding culture and market expectations. SAVART Motors recently achieved a 74.27% Domestic Component Testing Level (TKDN).

Electrification and artificial intelligence technologies are fundamentally changing transportation. To expand EV research, development and manufacturing capabilities, local EV manufacturers are turning to global technology companies for their expertise and ecosystem support. To gain access to cutting-edge electric vehicle technologies from global leaders, SAVART Motors has partnered with Arrow Electronics to improve design processes, speed up production and efficiently expand operations.

Arrow’s technology portfolio includes smart IoT connectivity modules, microprocessors, sensors and silicon carbide field-effect transistors (MOSFETs) for the automotive industry. In addition to expanding SAVART Motors’ internal R&D efforts, Arrow provided engineering support and guidance on system integrations including adaptive user interfaces, intelligent vehicle control units, AI-based user profiling, keyless and fingerprint access, and smart battery management systems.

Indonesia is ready to electrify its transport sector. To achieve the broader goal of the transportation industry, it is necessary to continue building electric vehicle charging infrastructure and develop domestic manufacturing capabilities. In the future, local companies will be able to achieve superior vertical integration, leading to significant cost efficiencies and improved control over the production process.

Together, we can not only build a strong domestic EV ecosystem, but more importantly, lead the movement towards a more sustainable future.

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Rafael Salmi is President of Arrow Electronics Components Division for South Asia, Korea and Japan. William E. Tyfan is the CEO of SAVART Motors.

The views expressed in this article are those of the authors.

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