Indonesia Electric Taxi Market Research Report: Size, Share, Trends & Forecast (2026-2032)

Indonesia Electric Taxi Market Report Key Takeaways:

• The Indonesia Electric Taxi Market size was valued at USD 16 million in 2025 and is projected to grow from USD 22 million in 2026 to USD 48 million by 2032, exhibiting a CAGR of 13.89% during the forecast period.
• By propulsion, the battery electric vehicles segment represented a significant share of about 72% in the Indonesia Electric Taxi Market in 2026.
• By end user, the urban commuters segment presented a significant share of about 56% in the Indonesia Electric Taxi Market in 2026.
• Leading Electric Taxi companies in Indonesia are Blue Bird Group, Green SM, Xanh SM (Green SM), Grab, BYD Company Limited, VinFast, Gojek, PT Express Transindo Utama Tbk, Maxim, Taksi Diamond, and Others.

Market Insights & Analysis: Indonesia Electric Taxi Market (2026-32):

The Indonesia Electric Taxi Market size was valued at approximately USD 16 million in 2025 and is projected to grow from USD 22 million in 2026 to USD 48 million by 2032. Along with this, the market is estimated to grow at a CAGR of around 13.89% during the forecast period, i.e., 2026-32.

The Indonesia electric taxi market is witnessing a rapid transformation, driven by rising environmental awareness, government support, and innovative mobility solutions. In September 2025, Green SM, in collaboration with Taksi Diamond, officially launched Green SM Airport, an all-electric taxi service at Soekarno-Hatta International Airport in Jakarta. Utilizing VinFast electric vehicles (EVs), the service offers promotional discounts of up to USD 3.20 per trip to encourage adoption and promote low-emission travel. Riders can conveniently book rides through the Green SM app or access designated pick-up points at Terminals 2 and 3, showcasing a shift toward tech-enabled, user-friendly mobility solutions .

Beyond Jakarta, Green SM expanded its all-electric fleet to Bekasi, offering VinFast EV rides through the mobile app with launch discounts of up to USD 9. This geographic expansion reflects the increasing availability of EV taxis in major urban centers and aligns with Indonesia’s smart mobility objectives.

The market growth is further accelerated by government incentives, such as the government-borne VAT (PPN DTP) in 2025. The state covers up to 10 % of the VAT for battery electric vehicles with high local content, effectively lowering net costs for buyers and fleet operators. Such fiscal support makes EV taxis more affordable compared with conventional vehicles and encourages fleet electrification . Another prominent driver of growth is the adoption of subscription-based and innovative business models. Mobility operators are moving beyond traditional pay-per-ride schemes to provide predictable, convenient, and integrated access to electric taxis. These models include app-based booking, bundled services, and flexible payment plans, which reduce barriers for both riders and fleet operators while enhancing customer engagement.

Indonesia Electric Taxi Market Recent Developments:

• 2025: Blue Bird Group announced it will add 600 electric taxis to reach a 1,000‑vehicle EV fleet by the end of the year, strengthening Indonesia’s taxi electrification and supporting cleaner urban transport options. This expansion aims to boost sustainable services amidst growing competition .
• 2025: Green SM, the electric taxi brand under GSM, launched operations in Bekasi, offering all‑electric rides with promotional fares up to USD 9.13 to attract users and integrate with local commuter networks as the country broadens EV mobility beyond Jakarta.

Indonesia Electric Taxi Market Scope:

Indonesia Electric Taxi Market Driver:

Government Incentives and Policy Support

One of the strongest growth drivers for the Indonesia electric taxi market is government incentives and supportive policies, aimed at making electric vehicles (EVs) more affordable and accelerating EV adoption nationwide. Under Minister of Finance Regulation No. 12/2025, Indonesia continues its Value‑Added Tax (VAT) Borne by the Government (PPN DTP) scheme, where the government subsidizes VAT on battery electric vehicles (BEVs). Locally produced BEVs with ≥40 % domestic components pay only 1% VAT instead of the standard 11 %, while vehicles with 20–40 % local content get a reduced VAT of 6%. This incentive is valid through December 2025 and directly lowers purchase prices for EV taxis and fleet vehicles, encouraging fleet operators to electrify. Import duties and luxury taxes on imported EVs have also been exempted until the end of 2025, further narrowing cost gaps between fossil‑fuel and electric options.

Moreover, the government’s broader industrial strategy includes local production requirements extending beyond 2025. Import incentives are ending after 2025, but BEVs assembled in Indonesia with required local content will continue to benefit from very low VAT (1 %) through 2026 and beyond, with increasing local content targets (e.g., 60 % by 2029, 80 % by 2030). This policy shift aims to attract investment in EV assembly and supply chains, with global automakers building plants to meet these thresholds.

The combination of tax relief, import duty exemptions, and a clear roadmap for local manufacturing significantly reduces operating costs and price barriers for electric taxis. By lowering acquisition costs for operators, incentivizing local production, and aligning long‑term industrial goals with urban mobility needs, these policy measures will continue to expand electric taxi fleets and deepen market penetration through the end of the decade.

Overall, government incentives and policy support make EV taxis more affordable and attractive to operators while signaling long‑term industry commitment. This reduces cost hurdles, attracts investment, and strengthens Indonesia’s EV ecosystem, ultimately driving robust growth in the electric taxi market through and beyond 2025.

Indonesia Electric Taxi Market Trend:

Subscription and Innovative Business Models Gaining Momentum

A prominent trend in the Indonesia electric taxi market is the rise of subscription-based and innovative business models, which enable convenient, predictable, and value-added access to EV mobility. Rather than relying solely on pay-per-ride payments, operators are integrating services into mobility-as-a-service (MaaS) platforms, allowing users to book, pay, and manage rides seamlessly through unified apps.

For instance, Green SM collaborated with Gojek to launch “GoGreen SM,” allowing passengers to request electric taxis directly within the Gojek app, reducing friction in adoption and boosting user engagement .

Additionally, Hyundai Motor Indonesia introduced a monthly EV charging subscription service in early 2025, providing access to 518 chargers across 288 stations nationwide. Subscribers can choose packages offering 50 kWh, 100 kWh, or 250 kWh per month, with discounted plans for EV owners purchased after September 2024 . This ensures predictable costs for fleet operators and private users while encouraging more frequent EV use.

These models reduce adoption barriers, foster loyalty, and encourage consistent usage. By combining ride-hailing platforms, subscription charging, and tiered service packages, the industry is transforming EV taxis from isolated services into integrated, sustainable urban mobility solutions, supporting long-term market growth.

Indonesia Electric Taxi Market Opportunity:

Expansion of Charging Networks

A critical opportunity for Indonesia’s electric taxi market is the rapid expansion of electric vehicle (EV) charging infrastructure, which directly supports higher EV adoption and addresses range‑anxiety concerns among fleet operators and drivers. Indonesia’s state‑owned electricity provider, PT PLN (Persero), dramatically increased public charging facilities: from 1,081 SPKLU (public charging stations) in 2023 to 3,233 by the end of 2024, a 299% increase, with home charging units rising over 302% to 28,356 units as well. This expansion also included nearly 10,000 general charging points (SPLU) across the country. The growth in infrastructure led to a 337% surge in charging sessions (402,509) and a 370 % jump in electricity consumption (9.1 million kWh) from EV users, indicating rising utilization .

Moreover, the Indonesian government plans to build an estimated 63,000 EV charging stations by 2030 to serve nearly 943,000 EVs, demonstrating a long‑term commitment to infrastructure readiness .

Expanding charging networks across urban and intercity corridors reduces charging wait times, supports high‑utilization taxi fleets, and increases fleet efficiency while encouraging private investment. This infrastructure build‑out enhances customer confidence, enables electric taxis to operate reliably, and accelerates the transition toward sustainable urban transport.

Indonesia Electric Taxi Market Challenge:

High Upfront Costs

One of the most significant challenges facing the Indonesia electric taxi market is the high upfront cost of electric vehicles (EVs) compared with conventional internal combustion engine (ICE) vehicles. According to an analysis in The Jakarta Post, electric cars in Indonesia have an average selling price of approximately USD 41,850, which is about 47% more expensive than the average ICE car at around USD 28,460. This higher sticker price creates a substantial financial barrier for taxi operators considering electrification, especially given the limited profit margins in taxi services where vehicles are high‑utilization assets.

The cost of EV batteries contributes substantially to this expense, often representing 40–50% of the total EV price. The Indonesian government acknowledges this issue; its Industry Minister noted that domestic battery production could reduce EV prices by 20–30% once local manufacturing scales up .

Despite incentives such as reduced VAT and luxury tax exemptions, these upfront costs remain a hurdle. For example, even with tax reductions, early Jakarta EV adopters highlight that EV acquisition costs are still steep relative to average Indonesian incomes, limiting broader fleet electrification.

Overall, high purchase prices driven by battery costs and limited local production remain a key impediment to electric taxi adoption. Until EV prices align more closely with conventional vehicles, fleet operators may hesitate to electrify, slowing market growth despite supportive poli

Indonesia Electric Taxi Market (2026-32) Segmentation Analysis:

The Indonesia Electric Taxi Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2026–32 at the global level. Based on the analysis, the market has been further classified as;

Based on Propulsion:

• • Battery electric vehicles (BEVs)
  • Hybrid electric vehicles (HEVs)
  • Plug-in hybrid electric vehicles (PHEVs)

Battery electric vehicles (BEVs) dominate the Indonesia electric taxi market, capturing 72% share in 2026. The preference for BEVs is driven by government incentives for zero-emission vehicles, lower operational costs compared to fuel-based vehicles, and rising environmental awareness among operators. BEVs also benefit from expanding charging infrastructure in urban areas and partnerships with EV manufacturers like VinFast and BYD, which supply reliable electric taxis. For fleet operators, BEVs provide predictable maintenance schedules and reduced fuel expenditure, making them ideal for high-utilization taxi services.

Additionally, BEVs align with Indonesia’s national targets for reducing urban air pollution, giving both corporate operators and consumers’ confidence in sustainable transportation. The increasing availability of long-range BEVs ensures minimal downtime, which is essential for maintaining profitability in a competitive ride-hailing and taxi market.

Based on End User:

• Urban Commuters
• Airport & Tourism Transfers
• Corporate / Premium Clients

Urban commuters account for 56% of electric taxi usage, making them the largest end-user segment. Rising urbanization in Jakarta, Surabaya, and other metropolitan areas has created significant demand for convenient, affordable, and sustainable transport. Electric taxis appeal to commuters seeking zero-emission rides, quieter vehicles, and seamless app-based booking experiences. Daily commuters prefer predictable fares, timely pickups, and environmentally responsible options, which EV taxis deliver. Additionally, urban areas often have better charging infrastructure and dedicated lanes or parking for EVs, increasing service efficiency. Taxi operators focus on this segment as it ensures high daily ridership and consistent revenue, while promoting green mobility aligns with city sustainability initiatives. Overall, urban commuters drive market growth by adopting EV taxis as a practical alternative to private vehicles or traditional taxis.

Indonesia Electric Taxi Market (2026-32): Regional Projection

The market for electric taxis in Indonesia is dominated by Jakarta and the Greater Jakarta (Jabodetabek) region, including cities such as Tangerang, Bekasi, and Depok. This dominance is driven by high population density, significant urban transport demand, and advanced digital mobility infrastructure, which supports seamless app-based ride-hailing and taxi services. Leading operators like Blue Bird Group and Grab have scaled their EV taxi fleets in Jakarta, offering city-wide coverage and connecting major business districts, residential areas, and shopping hubs.

For example, Blue Bird Group’s electric taxis are actively operating in the Sudirman Central Business District (SCBD), catering to corporate commuters and high-frequency urban travelers. The availability of charging stations, corporate partnerships, and consumer willingness to pay for sustainable mobility further enhance Jabodetabek’s market position. In contrast, other regions such as Surabaya or Medan remain in early adoption stages due to lower urban density and limited EV infrastructure, highlighting the concentration of EV taxi services in the capital region.

Gain a Competitive Edge with Our Indonesia Electric Taxi Market Report:

• Indonesia Electric Taxi Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Indonesia Electric Taxi Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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