The increasing use of electric vehicles in Indonesia is a business field for Micro, Small and Medium Enterprises (MSMEs). This is also in line with the direction of the Ministry of Cooperatives and SMEs (KemenkopUKM), which considers that MSME players must be able to take business opportunities in the electric vehicle ecosystem, especially domestic production, which is predicted to become more widespread by 2030. Based on a report by the International Renewable Energy Agency (IRENA) and the Ministry of Energy and Mineral Resources (ESDM), the number of electric vehicles is projected to reach 20 million units by 2030 and is expected to continue to increase until 2050. “There are many business opportunities that can be taken by MSMEs in this green business, such as in the development of Electric Vehicles (EV),” said Secretary of the Deputy for SMEs of the KemenkopUKM, Koko Haryono on Wednesday (29/11/2023). So, what business ideas can MSMEs do from the development of electric vehicles or EVs in Indonesia? In this article we will explain more about it.
What are the Business Opportunities for MSMEs from Electric Vehicles?
Koko Haryono said that the current trend of young business actors has shifted to green business where as many as 84 percent are interested in green business, 58 percent started a business to improve the environment, and 56 percent produce environmentally friendly clothing, low-carbon products, and waste reduction systems. This is considered capable of strengthening MSMEs by building ecosystems, as well as supporting the development of the locally-made electric motorcycle industry and increasing the Domestic Component Level (TKDN) to improve quality and production capacity. Not only that, Chairman of the Indonesian Electric Motorcycle Industry Association (AISMOLI) Busi Setiyadi also said that the use of electric vehicles itself can help MSME players to increase their business reach.
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For this reason, he hopes that MSME players can take advantage of the 7 million subsidy program provided by the government. Especially in increasing market reach and can be utilized further for the benefit of expanding their business.
What are the MSME Business Ideas from Electric Vehicles?
As explained, MSMEs have a great opportunity to be involved in the transformation and benefit from the increasing trend of using electric vehicles. In the context of MSMEs, electric vehicles are not only a means of transportation, but also present a variety of business ideas that can drive the wheels of the local economy. What are they? Here is the explanation:
Electric Vehicle Rental Business
The electric vehicle rental business can be an attractive option amid the trend of environmental awareness and the increasing need for green transportation. With the rapid growth in the use of electric vehicles, there is a great opportunity to enter this vehicle rental market. One of the advantages of the electric vehicle rental business is the contribution to environmental conservation. Therefore, this business not only provides transportation services, but is also an environmentally friendly choice.
Electric Vehicle Charging Station Installation Business
The electric vehicle market continues to grow, and this creates a need for charging infrastructure. Therefore, opening a business that focuses on selling and installing electric vehicle charging stations can be a promising business idea. You can work with local governments, businesses, or property owners to provide charging stations in strategic places.
Selling Electric Vehicle Accessories
With the increasing popularity of electric vehicles, you can also get into the business of selling accessories specifically for these vehicles. You can focus on developing interior accessories that can improve driver comfort or exterior accessories that make vehicles more efficient in energy use. Accessories such as charging cable organizers, special covers for electric vehicles, or special cleaning and maintenance products for electric vehicle batteries can be attractive product options.
Electric Vehicle Workshop Business
As the number of electric vehicles grows, there is a greater need for specialized maintenance and repair services for electric vehicles. Opening an electric vehicle repair shop or specialized maintenance service can be a promising business idea. You can provide routine maintenance, repair, and upgrade services for electric vehicles. As electric vehicle technology continues to evolve, providing these services can be a way for consumers to ensure their vehicles remain in optimal condition.
Eco Products Business for Electric Vehicle Owners
Given that electric vehicle owners generally have a high concern for the environment, there is an opportunity to open a business that focuses on selling eco-friendly products. This could include products such as reusable shopping bags, stainless steel water bottles, or other products that support a sustainable lifestyle. You can work with manufacturers of eco-friendly products or create your own products with a brand that appeals to electric vehicle owners. Those are the opportunities and business ideas that MSMEs can do from the proliferation of electric vehicles in Indonesia. As it develops, it is not impossible that there will be other new businesses that will emerge. Moreover, the government is also seriously developing battery-based electric vehicles in the country and has designed a road map for the use of electricity as a means of national transportation in the midst of society.
KH Contact
Well, for KH pals who are MSME players who also want to take business opportunities from the electric vehicle ecosystem, but are still confused about the process and steps to get started, you can consult with Kontrak Hukum. We have been trusted by more than 5000 companies and MSMEs in Indonesia in fulfilling all their needs, including the establishment of business entities, licensing, taxation, to intellectual property that can make it easier for KH Pals to start a business from electric vehicles.
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Don’t worry, the services provided will be handled by experienced professionals, complete, and certainly affordable! Let’s start an environmentally friendly business by visiting the KH Services – Starting a Business page. If you have any questions, you can also consult for free at Ask KH or send a direct message (DM) to Instagram @kontrakhukum.
