Jakarta. Vietnamese electric taxi service Xanh SM officially launched operations in Jakarta on Wednesday, marking its entry into Indonesia as its second international market after Laos. The service uses the VinFast VF e34 electric cars, distinguished by their signature turquoise-blue color.

Nguyen Van Thanh, Global CEO of Green and Smart Mobility Joint Stock Company (GSM), hailed the expansion as a bold step for the company, which has ventured into international markets less than two years after its establishment. According to Thanh, Indonesia’s rapid economic growth and large population make it a promising market for Xanh SM’s expansion.

Thanh stated that the Indonesian government's policy of promoting the electric vehicle ecosystem aligns with the company's goals.Geographic proximity and shared cultural values between Vietnam and Indonesia further convince Xanh SM’s ability to replicate its home-market success.

Riyatno, Deputy for Investment Climate Development at the Investment Coordinating Board (BKPM), lauded the role of electric vehicle services like Xanh SM in reducing emissions and supporting sustainable economic transformation.

“Integrating electric vehicles into ride-hailing services is a vital step towards realizing Indonesia’s green economy vision,” he said.

Xanh SM aims to operate up to 10,000 electric taxis in Indonesia by 2025, depending on market conditions. While the service currently operates exclusively in Jakarta, Thanh revealed plans to expand to Bali in the near future. 

The company’s launch follows a week-long trial involving 100 electric cars and approximately 40,000 passengers. Thanh acknowledged challenges in establishing charging infrastructure. Xanh SM currently uses two solutions: building its own charging depots and partnering with Vietnamese charging station provider VGreen.

Xanh SM was founded by billionaire Pham Nhat Vuong, who also established VinFast, Vietnam’s first global car manufacturer. As one of Vietnam's wealthiest individuals, with an estimated net worth of $4 billion according to Forbes.

GSM operates a fleet of 20,000 electric cars and 60,000 electric motorbikes produced by VinFast, with Xanh SM representing its electric taxi brand. The company employs over 80,000 people and aims to redefine urban transportation through sustainable and health-conscious mobility solutions.