Solidiance has invited Go-Jek to conduct a feasibility study on the viability of electric motorcycles as a mode of transportation. (JG Photo/Sheryl Yehovia)

Solidiance and Go-Jek Study Feasibility of Electric Bikes in Indonesia

JULY 21, 2018

Jakarta. Solidiance, an Asia-focused management consulting firm, has invited Indonesia's leading ride-hailing platform Go-Jek to conduct a feasibility study on the viability of electric motorcycles as a mode of transportation.

The trial, scheduled to take place this month, involves Go-Jek drivers operating in the Greater Jakarta area with the main purpose of measuring e-motorcycles' cost efficiency in comparison to vehicles powered by fuel.

"There are two reasons why we need to conduct a study on how we can transition to using electric vehicles. First, Indonesia's transportation sector is one of the main contributors of CO2 emissions, and motorized personal vehicles is one the main sources. Second, fossil-fuel is slowly depleting and deemed unsustainable as a future energy source. The urgency to make these changes must start now if we ever want our future generation to live a healthy life," Gervasius Samosir, associate partner and country head of Indonesia at Solidiance, said in a press release on Friday (20/07).

"Indonesia's motorcycle population is the highest in Southeast Asia, reaching around 105 million by the end of 2017. And with the boom of ride-hailing services, both parties have agreed to share the space of innovation that is a new way of eco-friendly transportation for the people," Gervasius added.

Ramda Yanurzha, head of research at Go-Jek Indonesia said the company believes that innovation in e-motorcycles could be one of the many solutions to help drivers reduce their operational costs while making transportation more efficient.

"Our mission is not only to create positive social impact for Indonesians but also to improve drivers' lives through innovation and technology. Go-Jek is able to use technology to help millions of lives every day, and by always innovating, we continue to be a market leader in Indonesia. We are excited to take part in this trial with Solidiance and see what the outcome of this innovation would look like," Ramda said.

According to Solidiance's latest white paper titled "Driving Electrification in Indonesia: The Road Towards Sustainable Transportation," Indonesia's electric vehicle market is projected to grow at a compound annual growth rate of 120 percent between 2017 and 2025. At present, electric two-wheeler vehicle penetration rate in Indonesia has only reached 0.14 percent, which is a long way from meeting the government target of 2.1 million e-motorcycles on the road by 2025.

To enable wider adoption and usage of EV in the future, it is thus crucial for the government to make clear regulations, support and upgrade the existing infrastructure.

Solidiance is a corporate strategy consulting firm focused on Asia with expertise on the industrial, automotive, technology, and health care sectors.