Electric vehicle adoption in Indonesia: Lesson learned from developed and developing countries

Abstract

This study investigates the factors influencing electric vehicle (EV) adoption in both developed and developing nations, with a particular focus on Indonesia's national strategy for EV promotion as mandated by Presidential Regulation Number 55/2019. Despite the Indonesian government's efforts, EV market penetration remains minimal, accounting for <1 % of total car sales as of 2021. This paper explores the critical factors driving EV adoption globally, revealing key differences between developed and developing countries. In developed nations, psychological factors such as personal moral norms and environmental awareness play a dominant role, while in developing countries, government policies and financial incentives are more influential. The socio-economic and cultural contexts in Indonesia present unique challenges, including lower consumer awareness, limited infrastructure, and economic disparities, which hinder widespread EV adoption. By integrating insights from global trends and the specific conditions in Indonesia, this study provides policy recommendations tailored to Indonesia's context, offering lessons for effective EV adoption strategies in similar developing nations.