Powering Indonesia’s Future: Reviewing the Road to Electric Vehicles Through Infrastructure, Policy, and Economic Growth

Abstract

Electric vehicles (EVs) emerged as a help for Indonesia as a pathway to address environmental challenges related to air pollution and greenhouse gas emissions from the transportation sector. Despite governmental efforts, including Presidential Regulation No. 55/2019, EV adoption rates in Indonesia remain low, although sales are increasing annually due to limited charging infrastructure, high upfront costs, and consumer perception. This study distinguishes itself from previous research by moving beyond a singular focus on policy, adoption factors, barriers, or economic opportunities. Instead, it integrates these dimensions into a cohesive analysis while placing particular emphasis on government policies. By adopting this multidimensional approach, the study presents a nuanced understanding of EV adoption in Indonesia, exploring not only the drivers, challenges, and economic potential but also the tangible benefits of EV manufacturing and usage for both producers and consumers within the current regulatory framework. It highlights the transformative impacts of EV adoption on key areas such as job creation, GDP expansion, and energy security, offering strategic insights for policymakers, industry leaders, and stakeholders. Future research could explore rural infrastructure development, local battery production impacts, and long-term economic implications of EV in Indonesia’s ecosystem.