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.
Highlights
Modern-day society relies on people and goods’ mobility
The literature review aims to answer the following questions: (1) How are electric vehicle (EV) being successfully adopted in some countries? (2) What kind of strategies do both the government and industry boost the EV adoption number? (3) What are the challenges and factors that affect EV adoption? (4) What is the trend of EVs in Indonesia? (5) What kind of regulations did the government enact to achieve their road map regarding EV in Indonesia? (6) To what extent does EV penetrate the market in Indonesia? (7) What kind of challenges and obstacles are faced by EV industries in Indonesia?
As one solution for reducing GHG emissions, EVs should be integrated into national transport strategies
Summary
Modern-day society relies on people and goods’ mobility. the currently dominant fossil-based fuelled transport systems harm the environment as they emit pollutants and increase greenhouse gas emissions. With fast economic growth and rapid urbanization in Indonesia, it is projected that more people will acquire a personal vehicle for mobility. With the fast economic growth of 5% in 2019, which is predicted to rebound in 2022 after the COVID-19 pandemic [1], and the high urbanization rate, it is expected that the necessity for convenient mobility will surge. Private vehicle ownership has been steadily rising by more than 5% yearly, according to the Indonesian Central Bureau of Statistics [2], which statistically comprises motorcycles (82%), cars (11%), buses (1.7%), and freight transport (5.3%). This trend shows that the market for private vehicles is still relatively high
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