Regarding The Indonesian Electric Vehicle Industry, Five Automotive Manufacturers From Japan Become Constraints

IEEFA Energy Analyst and Author of the Men's Report Adhiguna (left). Photo: Theresia Agatha/VOI

JAKARTA - The Institute for Energy Economics and Financial Analysis (IEEFA) assesses that the government's ambition to develop electric vehicles (EVs) in Indonesia is currently not in accordance with the business direction of players in the automotive industry. This condition is also considered to be able to break the development program for electric vehicles in the country.

Based on the IEEFA study, there are five automotive manufacturers that control 92 percent of domestic four-wheeled vehicle markets, including Honda, Mitsubishi, Suzuki, Toyota, and Daihatsu.

Even so, IEEFA Energy Analyst and Report Author Putra Adhiguna said the five automotive manufacturers still have a slow vehicle electrification plan that is not in line with government programs.

"Automotive players emphasize the importance of providing vehicle choices for consumers, but the all-electric option of them can hardly be found," Putra said at the launch of the Institute for Energy Economics and Financial Analysis (IEEFA): "Investigates the Dynamics of the Automotive Industry and Electric Vehicle Policy" at the AONE Hotel Jakarta, Monday, February 6.

The same condition was also encountered in the two-wheeled vehicle market which was concentrated on only two brands, namely Honda and Yamaha. Both are known to control 96 percent of the two-wheeled vehicle market.

The report shows that battery-based electric vehicles or Battery Electric Vehicles (BEVs) only cover 0.16 percent of Toyota sales units worldwide. Meanwhile, Honda's electric motorcycle sales are minimal.

"Positive steps towards electrification are starting to appear, but the existing plans still look weak, especially for emerging markets," said Putra.

The IEEFA report refers to the aggressive target set by Indonesia, namely 13 million electric motors and 2.2 million electric cars by 2030. However, the realization is still behind several other ASEAN neighboring countries.

"Competition with Thailand in electric cars is getting tighter, while Vietnam has succeeded (first) to encourage the use of electric motorcycles in front of Indonesia," added Putra.