July 31, 2025

DRMA’s EV Charge Begins

Market Commentary

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Indonesia’s biggest automotive event, Gaikindo Indonesia International Auto Show (GIIAS) is back, and as always, its buzzing with excitement. This year, something feels different. While traditional automakers are still drawing attention, the real crowd magnets are electric vehicles. There’s a good reason for this shift, EVs are becoming more attractive to Indonesian consumers due to very practical incentives: lower fuel expenses, cheaper annual taxes, and exemption from Jakarta’s traffic-limiting odd-even rule.

This trend opens up a massive opportunity, not just for EV brands, but for the ecosystem that supports them. One name that deserves attention is Dharma Polimetal (DRMA). While DRMA may not be a household brand like the carmakers showcasing at GIIAS, it plays a crucial role behind the scenes: manufacturing automotive components for both two-wheelers and four-wheelers, including those used in electric vehicles.

More than just a supplier, DRMA is actively building an integrated EV ecosystem under its initiative Dharma Connect, which includes battery-related solutions (DC Battery), charging infrastructure (DC Power), EV motor components (DC Motor), solar integration (DC Solar), and EV conversion technologies (DC Cross).

According to the latest 2Q25 earnings update, DRMA delivered results that were largely in line with expectations. While quarterly net profit dropped due to Lebaran seasonality and softer performance in the four-wheeler segment, the company’s two-wheeler division remained a key driver, contributing 63% of total revenue and growing 14% yoy. DRMA’s close ties with Honda’s motorcycle production have been a source of stability, even as the broader automotive industry remains relatively flat.

Looking ahead, DRMA is well positioned to capitalize on growth. The company is forecast to grow its revenue by 7% in 2025, with net profit expected to reach Rp616bn, up 6% from the previous year. It’s also ramping up capacity with two new plants under subsidiary Dharma Kyungshin, which are set to contribute meaningfully in 2026.

In short, the excitement around EVs at GIIAS is not just about what’s shiny on the surface, it’s also about the suppliers building the core. DRMA offers investors a rare chance to gain exposure to this transition from the inside out. With a target price of Rp1,500 and 56% upside potential, DRMA is a name worth watching, and one that could quietly power the next phase of Indonesia’s mobility revolution.

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July 31, 2025

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