The final part of VOI's Typical Writing Series, "The Sting of the Enchantment of Electric Cars," seeks to describe the dynamics of world change that will disrupt the electric vehicle industry and whether Indonesia can follow suit.
The transformation of the automotive industry from oil-fueled vehicles to electricity is a necessity. Countries in the world are competing to enter this new era, including Indonesia, which has the potential to become the king of electric car batteries with the largest nickel content in the world. The question is, how ready is our country to face the changing this era?
Before we look ahead to welcome the era of electric vehicles, we need to know what will be left behind. Because there is always something to be sacrificed from every change.
Sooner or later, more or less, the electric car industry will affect the world oil industry. How could not, the portion of the transportation industry accounts for about half of all world oil demand.
Not only that, the limited supply of fuel oil (BBM) and the increase in price made many parties begin to limit the use of BBM. In addition, the potential impetus to avoid the worst impacts of climate change also has the effect of reducing oil demand.
This has an impact on countries that rely on revenues from sales of oil. They rethink strategy and have to think twice about delaying production or developing a reserve idea if they can't monetize oil in a long time.
For example, Saudi Arabia, this country had announced that it was pouring state funds of US $ 2 trillion, to prepare itself for the era when oil no longer dominates the global economy. These countries will face urgent conditions to reform their economies.
Transition period
Switching from an oil-fueled car to an electric car is not easy. The world has known for many years that cars generally run on oil. Because of this, many countries are giving gradual regulations to end the production of fossil-fueled cars while switching to electric cars.
Norway, for example, as quoted by Road Traffic Technology, was one of the countries that proposed that the sale of cars with gasoline and diesel fuel be prohibited. In the United States, automaker General Motors also vowed to stop making gasoline-powered passenger cars, vans, and sports vehicles by 2035.
It marks a historic turning point for the iconic American automaker and promises a new electric vehicle future for American motorists. Meanwhile, they will invest the US $ 27 billion in electric vehicles and related products between 2020 and 2025, more than spending on conventional petrol and diesel vehicles.
Turning to the UK, the country has also taken a similar policy by banning the sale of petrol and diesel cars and vans from 2030, five years earlier than previously planned. The plan is part of what British Prime Minister (PM) Boris Johnson calls a "green revolution" to reduce emissions to net-zero by 2050.
Then, how about in Indonesia?
As is well known, Indonesia is again keen to pursue its ambition to become a major player in the electric car industry. With the largest nickel reserves in the world, Indonesia will take on the role of an electric car battery tycoon. The question is, how ready is this country to manifest its ambition?
The dawning of a new era
Indonesia does have a lot of provisions to control the production of a vital component of electric cars, namely batteries. Based on the mapping of the Geological Agency, quoted on the Ministry of Energy and Mineral Resources (ESDM) website, Indonesia has nickel ore resources of 11,887 million tons. Meanwhile, the total metal resources in Indonesia reached 174 million tons and 68 million tons of metal reserves.
Indonesia's initial steps to embody its vision began with making Presidential Decree 55 2019 concerning the Acceleration of the Battery Electric Vehicle Program for Road Transportation issued by President Joko Widodo. This regulation is considered to be the first milestone to start building the domestic electric vehicle industry.
In terms of infrastructure, the Ministry of Energy and Mineral Resources said that currently 101 Public Charging Stations (SPKLU) have been built in 73 locations in Indonesia. Quoting Antara, the Head of Information and Cooperation Services (KLIK) Bureau of the Ministry of Energy and Mineral Resources, Agung Pribadi, said that the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pamdjaitan virtually inaugurated the first SPKLU on the Trans-Sumatra Toll Road on Tuesday 26 January 2021.
The seriousness of the Indonesian government in preparation for the use of electric cars is also stated in the Minister of Energy and Mineral Resources Regulation Number 13 of 2020. State Electricity Company (PLN) is given the task of providing infrastructure for charging electric motor vehicles with plans to add up to 254,181 units for the next 10 years.
From a funding perspective, Indonesia's opportunities to attract big world investors are wide open. This is proven by the entry of investment from LG Energy Solution for the construction of an electric vehicle battery project. In addition, the well-known US producer under Elon Musk, Tesla is also reportedly planning to invest in the country.
Indonesia's potential
Regarding Indonesia's potential in producing its own electric car, if we look at the capability of its capable human resources. Talking with VOI, automotive observer Bebin Djuana, many sons of the nation have the ability. The question is, are they given a chance?
Moreover, electric cars have fewer components, one-tenth of the existing cars. Bebin explained that 30 or 40 years ago Indonesia had a dream of building its own vehicle. But it did not work because it was forced all to be made in the country. Many components, do not enter economies of scale, and prices become expensive.
"Now we look at electric cars, learning design is not as complicated as it used to be. One-tenth of the existing cars, I see it there. So the possibility to build your own car or your own motorbike can come true".
According to researchers from the Institute for Development of Economics and Finance (INDEF), Heri Firdaus, related to whether Indonesia is ready or not in the production of electric cars nationally, it could be done considering the fewer electric car components. But it is better not to rush and start from producing the smallest components, for example, the battery. We know that battery component materials are widely spread in Indonesia.
When contacted, Heri also explained that Indonesia could play a role in the electric car industry by producing components in electric cars. Apart from being more efficient, it also adds to the value of these goods considering that Indonesia will eventually export the goods.
Besides that, keep in mind that a country is not required to have its own car brand. The most important thing is seen from the efficiency in the production process. Even if forced to assemble a national electric car by importing its components, it will spend more.
"Because if everything is imported, then we (Indonesia) only assemble it, how about the value. Like sewing us", said Heri when contacted by VOI.
In addition, preparing to produce or use an electric car is not easy. There are many things that must be considered by various related ministries. Apart from the government side, Indonesia must also prepare more in terms of human resources, for example by giving lessons to the nation's children so that later they can be richer in knowledge in matters relating to electric cars, especially Indonesia's main goal of producing electric cars on a national scale.
In addition, the existence of the Presidential Decree 55 of 2019, can also encourage national electric cars. This is because there is already a strong legal umbrella. However, it is important to remember that producing a national electric car is not easy and involves various parties, it is better if there is a derivative from the Perpres so that the preparation will be better and strengthen coordination between the parties involved, added Heri.
Simulation of driving an electric car
We try to describe how and what is needed in the use of electric cars. Jakarta - Anyer Beach as an illustration option. It will take 2 hours drive to Anyer Beach if we drive from Jakarta. The distance from Jakarta to Anyer Beach is approximately 140 km -150 km.
Automotive observer Bebin Djuana explained, before starting the journey, what needs to be considered from the start is how far the electric car can reach the trip when it is fully charged. This depends on each brand of the electric car.
Suppose we own a Hyundai IONIQ brand electric car. Hyundai IONIQ when fully charged can travel up to 373 km. This means that if we travel from Jakarta to Anyer, which is about 150 km away, we don't have to worry about running out of power on the way, because we cover a distance that is not up to the maximum.
However, what if the electric car or electric motor that we have, if it is fully charged, has a travel power of under 150 km? Bebin reminded that it is important to know where the SPKLU is on the way, at what point the vehicle power becomes 10 percent, and how long it takes to charge the vehicle from 10 percent to 80 percent.
"It only takes 5-10 minutes to fill up the gas. If you charge the (car) battery, you have to find 'which restaurant can I take a ride to charge.' You must have a more mature plan".
Changing lifestyle
Switching the use of conventional cars to electric cars is not just changing vehicle fuel that was previously BBM into batteries. However, various aspects need attention. Because the lifestyle will change.
Bebin reminded us that when we have an electric vehicle, we must have a more mature plan. Because just to charge the car electricity takes time. Unlike conventional cars, which only need to stand in line, fill up gas, and immediately continue the journey.
"You fill up with 5-10 minutes of gas and that's all the queue time. If you charge? Half an hour doesn't mean it's 80 percent filled", said Bebin.
Apart from the state of the car, the state of the charger must also be considered. When using a fast charger, the electric charging time can be faster. For example, if we have a car that needs to be charged up to 100 percent, it takes 7-8 hours, with a fast charger that time can be cut by half, usually at public charging stations. As for a normal charger, it can take up to 7-8 hours or 11-12 hours, depending on the car brand. The more sophisticated the technology, the faster the car will charge.
Even though it sounds complicated, Bebin said that it was because people were not accustomed to using electric cars. Moreover, there are actually many advantages you feel when using an electric car. Among them are charging that is cheaper than filling gas, and easier car maintenance.
"If you care for your car at this time, you have to take care of it. What arrangements? To the garage, service. At least change the oil. But for electric cars, maybe the most important thing you don't forget to charge", concluded Bebin.
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