Current Readiness Status of Electric Vehicles in Indonesia: Multistakeholder Perceptions

Abstract

As a net oil importer since 2004, Indonesia’s success in developing fuel economy and infrastructure for electric vehicles would be vital to ensuring energy security and decarbonization from the transport sector. Following the Presidential Regulation on the Acceleration Program for battery-based EV for Road Transportation in 2019, the Indonesian government provides incentives for the domestic production of EVs. However, as EV technology is relatively new for the domestic automotive industry in Indonesia, it needs to go through stages of development to achieve full readiness in society. This study analyses the key stakeholders’ perceptions of EV industries using the Japanese technology readiness assessment (J-TRA) to better understand the current readiness level of EVs in Indonesia. Primary data are collected through interviews with an EV start-up company, experts in the EV field, government officials in charge of the national EV projects, and EV end-users. Extensive literature related to success stories of EV adoption in other countries was conducted as the basis for this study. The results showed that key stakeholders agree that EV technology has reached a high readiness level in technology development. Most of the stakeholders voted that the readiness bottleneck is commercialization, safety, and integration parameters. Furthermore, an elaborate policy recommendation gathered from both literature reviews and interviews with related stakeholders is presented.

Analysis of Consumer Behavior towards Electric Vehicles: Intentions, Concerns, and Policies

“…55 of 2019 on the Acceleration Program of Battery Electric Vehicles for Road Transport was published in 2019 to establish a legal umbrella for electric vehicle development in Indonesia. This regulation enabled several ministries to initiate electric vehicle projects in the country [47].…”

Evaluation of Barriers to Electric Vehicle Adoption in Indonesia through Grey Ordinal Priority Approach

“…To help accelerate the transition to electric vehicles in Indonesia, President Joko Widodo issued Presidential Regulation No. 55 of 2019 in the form of incentives to assist the transition from internal combustion engines to an electric vehicle (Maghfiroh et al, 2021). However, there was only 0.15 percent of EVs on the road at the end of September 2020 (IESR, 2021).…”

“…Numerous studies have identified consumer range anxiety as one of the significant barriers to the adoption of electric vehicles (Liao et al, 2017;Maghfiroh et al, 2021;Marciano & Christian, 2020). This is undoubtedly true when the drivers notice power depletion while driving are unsure how far they can travel on their remaining battery charge, or when trips are suddenly extended (Graham-Rowe et al, 2012).…”

Challenges of transforming Indonesia’s circular economy in the context of electric vehicle policy

“…Indonesia can seize this opportunity because Indonesia is a producer of one of the battery components, namely nickel which covers 29.8% of world production [12]. Through Presidential Regulation Number 55 of 2019 regarding the acceleration of the electric vehicle battery industry development program, Indonesia has become a legal umbrella for building renewable energy challenges in line with the Paris Agreement goals [13]. However, Indonesia faces the challenge of a lawsuit from the European Union to the WTO in the development of the electric vehicle battery industry.…”