A recent study published in the World Electric Vehicle Journal highlights significant barriers to electric vehicle (EV) adoption in Indonesia, despite government efforts aimed at promoting cleaner transportation. Conducted by Ardhy Lazuardy from the Industrial Engineering Department at Universitas Indonesia, the research reveals that the country’s EV market share remains at a mere 1.47%, far from the ambitious target of 10% set for 2022.
The study identifies several obstacles hindering the growth of the EV sector, including inadequate charging infrastructure, limited public revenue, and financial constraints. While the Indonesian government has implemented initiatives such as Presidential Regulation 55 of 2019 to drive EV adoption and reduce air pollution, these measures have not yet translated into significant market penetration. “Respondents offered various justifications for embracing electric cars, but many expressed a wait-and-see attitude in light of legislative, technological, financial, and environmental obstacles,” Lazuardy noted in the study.
Consumer preferences play a crucial role in this slow adoption. The research indicates that electric motorcycle users demonstrate a lower understanding of technology compared to electric car users, which could impact their purchasing decisions. Factors such as operational costs, environmental concerns, and the availability of charging stations significantly influence consumer choices. As Lazuardy pointed out, “The primary elements driving electric car adoption are range, maintenance affordability, battery dependability, accessibility to charging stations, and environmental conservation aims.”
For the energy sector, this research underscores both challenges and opportunities. The demand for charging infrastructure presents a commercial opportunity for energy companies to invest in and develop robust networks that can support the growing number of EVs. Moreover, the study suggests that targeted government policies and incentives for local manufacturers could stimulate domestic production and innovation, further enhancing market conditions for EVs.
As the global market for electric vehicles is projected to reach USD 623.3 billion by 2024, with a compound annual growth rate of 9.82%, Indonesia’s energy sector stands at a crossroads. By addressing the barriers identified in Lazuardy’s research, stakeholders can create a more conducive environment for EV adoption, ultimately contributing to a cleaner and more sustainable future. The insights from this study provide a valuable roadmap for policymakers, manufacturers, and energy providers looking to capitalize on the EV revolution in Indonesia.
