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Ideanomics’ (NASDAQ: IDEX) Treeletrik Subsidiary to Supply 200,000 E-Motorcycles to Indonesia, Setting Stage for Significant Expansion

  • Treeletrik, Ideanomics’ subsidiary, inked a $274 million three-year deal with two distributors to supply 200,000 e-motorbike units to Indonesia
  • The deal will result in Treeletrik’s expansion, enabling Ideanomics to continue providing its shareholders with high-growth opportunities
  • Indonesia, the third-largest motorcycle market in the world, is a promising market for e-motorbikes, as evidenced by the projected growth at a CAGR of ~21% from 2019 to 2025

The Indonesian electric motorbike market is expected to grow at a CAGR of 20.96% from 2019 to 2025, reaching $816.2 million from $364.4 million ( amid clamor around the high vehicular pollution and the need to reduce CO2 levels in the country. Suggestions point to the introduction of a sustainable mode of transport as the solution to these problems. Further, the Association of Southeast Asian Nations (“ASEAN”) region, of which Indonesia is part, is committed to reducing final energy consumption in the road transport sector by 2040.

As a manufacturer of 100% electric vehicle (“EV”) products, including motorbikes, this is welcome news for Malaysia-based Tree Technologies Sdn Bhd (“Treeletrik”), a portfolio company of Ideanomics Inc. (NASDAQ: IDEX). Recently, Treeletrik announced it had inked a $274 million three-year deal with two Indonesian distributors, PT Pasifik Sakti Enjiniring and the Nahdatul Ulama Board (“PBNU”), that will see it supply 200,000 units of its electric motorbikes to Indonesia in yearly tranches. In 2021, Treeletrik will deliver a minimum of 10,000 units, followed by up to 90,000 units in 2022 and, finally, up to 100,000 units in 2023 (

The partnership places Treeletrik in a favorable position to leverage Indonesians’ love for two-wheelers and generate revenue as a result. In 2019, for example, approximately 6.49 million motorbikes were shipped into the country, effectively making Indonesia the third-largest motorbike market in the world, behind India and China. Indonesia claimed this third position thanks to the increasing demand for cheaper personal transport, high disposable income, upgraded road infrastructure and rising popularity of loan and credit facilities (

While Treeletrik is bound to benefit from a combination of these factors, which will naturally increase the sales of its motorbikes, the evident demand for cheaper personal transport alternatives is likely to stand out as a key driver. Its electric motorcycles offer a more affordable means of transport than motorbikes with combustion engines.

The e-motorbikes, which have a daily estimated range of between 80 and 120 kilometers and can cruise at an average speed of 65-90 km/hour, run at an estimated cost per kilometer of between RM0.01 and RM0.02 ($0.0024 to $0.0049), when an electricity rate of RM0.571/kWh ($0.14), the highest tariff by the Tenaga Nasional, is used.

In contrast, an independent comparison conducted in 2017 pitting nine gasoline-powered motorcycles against one of Treeletrik’s motorbike models, the T-70, established that the gasoline-powered bikes were more expensive to run per kilometer at RM3.7-12 ($0.90-2.92) compared to the T-70’s RM0.0072 (, a figure consistent with the current RM0.01-0.02 estimate.

The affordability aspect of the e-bikes formed part of a statement by Treeletrik CEO Datuk Viswananthan Menon, who hailed the company as a forerunner in taking fully electric bikes to the ASEAN region and beyond, pioneering a new way of mobility. “Our 100% electric motorbikes offer customers long-term cost savings and more importantly contribute towards an overall positive impact to the environment,” he said.

According to Menon, the deal Treeletrik entered with the distributors, other similar sizeable orders and ongoing discussions with other countries interested in its range of e-bikes will result in its significant expansion in both its home country and in international markets. Thus, Ideanomics, which acquired a controlling stake in Treeletrik in 2019 as part of its strategy to drive the adoption of commercial EVs, is well placed to continue providing shareholders with high-growth opportunities.

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