Electric Car Rental: A Future-Proof Business with Minimal Capital

As sustainability becomes more than just a buzzword, Indonesia is stepping up its transition toward a greener future—especially in transportation. With government-backed initiatives to promote electric vehicles (EVs), the country is paving the way for new business opportunities in the EV ecosystem.

One standout option? Electric car rental—a growing, future-ready business that can be started with relatively low capital investment.

Why the EV Market Is Heating Up in Indonesia

Indonesia is Southeast Asia’s largest auto market and one of the fastest-growing digital economies. With a population of over 270 million and increasing urbanization, the need for clean, affordable transportation is urgent.

Recognizing this, the Indonesian government has issued policies like Presidential Regulation No. 55/2019 to accelerate EV adoption. The roadmap includes:

• Building a domestic EV industry (including battery production)
• Expanding charging infrastructure across major islands
• Offering tax incentives and import duty exemptions
• Phasing out internal combustion engine vehicles in the long term

This push has led to rising sales of electric vehicles in Indonesia—particularly in urban centers where demand for sustainable transport is increasing.

Why Rental is the Sweet Spot in the EV Economy

Despite growing interest, EV ownership in Indonesia is still relatively low due to high purchase prices. Here’s where the rental model bridges the gap. Instead of buying, many individuals and businesses prefer renting EVs for short-term use—whether for ride-hailing, delivery, or even leisure.

Electric car rental businesses tap into this demand while keeping operational costs lean:

• Minimal fuel cost: Electricity is far cheaper than gasoline in Indonesia.
• Lower maintenance: EVs have fewer moving parts and require less servicing.
• Available financing: Fintech companies and leasing providers now offer flexible payment schemes.
• Tax incentives: Some local governments waive vehicle taxes for EVs.
• Public support: Gen Z and millennial consumers are increasingly eco-conscious and tech-savvy.

Ideal Locations and Use Cases in Indonesia

Several regions in Indonesia already show strong early adoption potential:

• Bali: A global tourism hotspot, Bali promotes clean energy through eco-tourism. EV rentals are increasingly popular among both tourists and hotel partners looking to reduce their carbon footprint.
• Jakarta: With its odd-even traffic rules and pollution issues, EVs provide a practical and efficient solution. Rental services are being used by online drivers and urban professionals.
• Bandung and Yogyakarta: University cities with younger populations, ideal for small-scale EV-sharing startups targeting daily commutes or weekend travel.