Working Paper
Indonesia transport electrification strategy
This strategy document examines the ongoing efforts to promote electromobility in Indonesia, identifies key stakeholders relevant to electric vehicle (EV) issues, and identifies synergies among existing EV initiatives nationwide, as well as policy gaps in the effort to accelerate EV uptake in Indonesia. The strategy highlights actions and instruments of third parties to support the government in accelerating electric mobility transition in the country. It aims to guide NGOs and civil society organizations in channeling their support for the EV transition and to help philanthropic agencies to prioritize support for this objective.
The EVs mentioned in this strategy document refer to battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) of all key transport modes, including two-/three-wheelers (2/3W) and four-wheel vehicles for private use and public transport. Fuel cell electric vehicles, despite having been included in the country’s roadmap for automotive industry development, are not included since the technology and infrastructure are at a nascent stage.
Because EV development is highly dynamic, this document focuses on potential actions by NGO communities and philanthropic agencies for advancing EVs in the medium-term, defined as a three- to five-year period. The local knowledge to develop this strategy document was compiled from discussions and inputs emerging from a strategy development virtual workshop (three half-days) held over the 29 September–1 October period in 2020. Participants for the event came from government entities at the national and local levels, domestic and international NGOs, universities, and industry. Bilateral meetings with key stakeholders were also held to clarify and enrich the conclusions of this work.
High-level decision makers have presented their intention to encourage the uptake of EVs. A variety of regulations and policies have been issued or are in the pipeline to support this transition. Nevertheless, the vision of electrification and the supportive policies are not yet clear enough or strong enough to speed the transition. Given the current EV market share in Indonesia, it may take several years for EVs to enter the market at scale. There is a clear need for effort and investment from different parties to contribute to this transition.
The recommended actions could be considered catalysts to help Indonesia achieve its ambition to become an EV hub. Based on the status quo and stakeholder inputs, this document identifies 7 areas of intervention that can be prioritized for philanthropic investments. The table below summarizes the recommendations made under this strategy document.
Table. Summary of recommendations
| Area of intervention | Recommended actions/initiatives |
|---|---|
| Coordination in making a binding commitment to achieve electrification targets |
|
| Development of regulatory and fiscal policies and guidelines that spur demand for and supply of electric vehicles and technologies |
|
| Research and development that builds up domestic manufacturing and service capacity |
|
| Strengthen charging infrastructure |
|
| Increase consumer awareness to support EV uptake |
|
| Accelerate EV deployment in public and private fleets |
|
| Establish pilot projects in cities and replicate success cases to other cities |
|
