Electric Vehicle Resale Hurdles in the Indonesian Market
Electric vehicles (EVs) are increasingly entering the secondary market in Indonesia, but traders remain selective about which models they acquire. Yogi, a used car dealer at MGK Kemayoran, told oto.detik.com that the condition of the battery is one of the determining factors influencing whether a vehicle is accepted for resale. Dealers typically require a battery health status of at least 90 percent to consider purchasing a unit.
Among the models currently sought after in the used market, vehicles from BYD, such as the Atto 1 and the BYD Seal, are seeing higher demand, according to Yogi. The resale value of these vehicles is highly sensitive to battery performance; if the battery is not in peak condition, the vehicle’s market price can drop significantly.
Factors Driving Rapid Depreciation
The depreciation of used electric vehicles in Indonesia is steeper than that of conventional internal combustion engine cars. Agung Iskandar, Director of OLXmobbi, identified two primary reasons for this trend in a report by oto.detik.com. First, the rapid introduction of newer, more advanced, and more affordable models renders older generations less desirable. Manufacturers often use aggressive pricing strategies for new units, such as special introductory pricing for early buyers, which complicates price stability for used models.
Second, the structural decline of battery performance over time negatively impacts valuation. Some manufacturers’ policies regarding battery warranties pose a major barrier. In many cases, the battery warranty is voided when the vehicle ownership is transferred, a factor that contributes to the consistent decline in resale value.
Regulatory Framework for the EV Ecosystem
While the secondary market faces challenges, the broader Indonesian EV industry is undergoing regulatory shifts to stabilize the domestic ecosystem. The National Economic Council (DEN) has outlined three instruments to ensure the industry’s success, as reported by cnbcindonesia.com. These include calibrating mining regulations for nickel to prevent oversupply, enforcing consistent domestic content requirements (TKDN), and providing targeted industrial incentives.
The government has set a roadmap for TKDN, requiring 60 percent local content by 2027, which includes local battery pack assembly, and increasing that to 80 percent by 2029 with a mandate for domestic battery cell production. Septian Hario Seto, Executive Secretary of DEN, emphasized that these policies are designed to ensure the industry remains sustainable and competitive within the global supply chain. Speaking at the Minerba Convention & Exhibition (Convex) 2026 on November 4, 2026, Seto noted that the first instrument involves aligning nickel mining work plan (RKAB) quotas with global market demand and downstream smelter needs to maintain balance. He further explained that the third instrument includes specific incentives to support the midstream sector, the local battery supply chain, and the adoption of electric motorcycles.
Market Outlook for Used Electric Vehicles
Despite the depreciation risks, some market segments view the end of 2026 as an opportune time to enter the EV market at a lower price point. According to sumeks.disway.id, models like the Wuling Air EV are attracting buyers looking for affordable daily transport for city commuting. Prices for such compact models have been observed in the range of Rp95 million to Rp140 million. Prospective buyers are advised that purchasing a used EV requires a different inspection process than traditional vehicles. Key components such as the traction battery, power inverter, and the battery management system (BMS) require specialized checks.
Key Questions Face Used Electric Vehicle Buyers
What does battery condition mean for a used EV buyer? Battery condition is one of the most important factors because it directly affects driving range and repair costs if damage occurs, which influences the resale price.
Why do some EV warranties not transfer to new owners? For some electric vehicles, the battery warranty is voided when the unit changes hands. Which models are currently visible in the Indonesian used EV market? Traders have noted interest in BYD models such as the Atto 1 and Seal, while the Wuling Air EV is frequently cited as a popular, budget-friendly option for urban mobility. Availability and pricing fluctuate based on the vehicle’s age, total mileage, and the current market conditions for new units.
Keep reading