Indonesia has emerged as a promising market for electric vehicles (EVs), with one key factor contributing to this potential being the lower fuel costs and reduced emissions associated with electric cars. However, the sustainability of electric mobility in Indonesia varies among provinces due to differences in electricity costs and resources.

In August 2019, the state electricity company of Indonesia (PLN) had a surplus of over 3000 MW, ensuring an ample power supply for electric vehicles. Nevertheless, the scarcity of charging stations remains a significant hurdle for EV operators. Additionally, the higher upfront cost of pure electric vehicles compared to conventional vehicles poses a challenge.

The Ministry of Energy and Mineral Resources of the Republic of Indonesia supports the sustainability of electric vehicles to reduce fossil fuel consumption. Although operational costs depend on the type of electric vehicle used, the potential for financial savings is already evident.

Indonesia's regulations on electric vehicles are supportive, as seen in Presidential Regulation Number 55 of 2019. The government is committed to reducing air pollution, reflecting Indonesia's desire to actively participate in the growing electric vehicle industry.

Drawing inspiration from successful models, Indonesia can learn from Norway's approach, where the government provides financial incentives such as tax deductions and non-financial benefits like access to dedicated lanes for electric vehicle users. Moreover, the private sector can take a cue from Singapore's BlueSG, offering electric car-sharing services and attractive charging station rates.

By addressing challenges related to charging infrastructure and upfront costs, Indonesia can further foster the adoption of electric vehicles, aligning with global trends towards sustainable and eco-friendly transportation.

 

Source: CFDS