Energy Observers Disburse The Cause Of Low Electric Vehicle Adoption In Indonesia

JAKARTA - IESR Executive Director and Energy observer, Fabby Tumiwa revealed 3 main factors that cause the low adoption of electric vehicles, both two-wheeled and four-wheeled vehicles in Indonesia.

Based on IESR data, Fabby said sales of two-wheeled electric vehicles in Indonesia had increased by 260 percent since the beginning of 2020 while sales of 4-wheeled vehicles had reached 480 percent in Indonesia. However, the market share of electric vehicles in Indonesia has only reached 1 percent of the total number of electric vehicles every year.

"At least 3 main factors cause the low adoption of electric vehicles. The first is the very expensive initial purchase price," he said when opening the webinar Indonesia Electric Vehicle Outlook 2023, Tuesday, February 21.

Fabby added that the second factor is the performance of electric vehicles that are not as good as conventional vehicles and the third is the lack of appropriate electric charging infrastructure, especially for electric cars.

Furthermore, said Fabby, in line with Indonesia's efforts to cut the effects of greenhouse gases (GHG) and avoid the climate crisis and strengthen energy security, the adoption of electric vehicles must be increased quickly in 2030.

Based on the IESR study published in 2021, Fabby continued, in order for the decline in GRK to be in line with the Paris Agreement, at least 65 percent of motorcycles and 5 percent of cars must be electrified in 2030.

"Of course, this must also be accompanied by efforts to reduce fuel consumption through energy efficiency efforts and increase fuel and substitution qualage to lower carbon and pollution fuels," continued Fabby.

Fabby continued, in order to increase the adoption of electric vehicles, the first thing that must be done by the government is to accelerate the development of an electric vehicle ecosystem from upstream to downstream which includes an integrated policy based on no frequency policy and incentives.

"He is developing a competitive battery and electric vehicle manufacturing industry, both two-wheeled and four-wheeled, and the third is standard strengthening, standard refinement. The fourth is the provision of charging infrastructure for fast charging 4 wheels," explained Fabby.

Fifth, he continued, is financing and finally restructuring the electricity system and increasing the renewable energy mix from the electricity system.

"Lastly, it is very important because the use of electric vehicles is also in addition to reducing fuel consumption, it is also intended to benefit from reducing GRK emissions. And if the EBT mix in our electricity system remains as it is today, we cannot get GRK emissions," he concluded.