Will Electric Cars become the Future of the Indonesian Automotive Industry?

Electric cars have become an increasingly popular topic in the Indonesian automotive industry and around the world. The adoption of electric cars in Indonesia is still in its early stages, but sales are steadily increasing. Furthermore, charging infrastructure, known as SPKLU, is also being developed in several major cities. Car manufacturers have also considered Indonesia a potential market for electric vehicles in the future, as evidenced by the interest of several large manufacturers in establishing their electric car assembly plants in the country.

 

The Development of Electric Cars in Indonesia

Electric cars are not entirely new to Indonesia. In 2010, Toyota introduced the FT-EV II, a vehicle fully powered by batteries and electric motors. Enthusiasm for electric cars in Indonesia also surged around 2012 when Dahlan Iskan, who was serving as the Minister of State-Owned Enterprises at the time, initiated several national electric car projects. These projects even resulted in prototypes such as the Tucuxi and Selo. However, recent updates on these projects have faded into obscurity.

 

With growing awareness of the negative impacts of climate change and the limitations of fossil fuel resources, the development of electric cars has become a major focus in the automotive industry. Countries like China, the United States, and some European nations have taken significant steps to promote the adoption of electric cars with advanced technologies. This success has encouraged other countries, including Indonesia, to consider the use of electric cars.

 

In Indonesia, the adoption of electric car technology is still in its early stages. While some electric car brands are entering the Indonesian market, their market share is still very small compared to conventional fossil-fueled vehicles. Electric cars are generally considered premium vehicles with high prices, making them less accessible to many consumers. Nevertheless, there is a growing interest among consumers in environmentally friendly electric cars, especially in major cities.

 

Read Also: The Lineup of Electric Vehicles at GIIAS 2023

 

The Indonesian Government Promotes the Use of Electric Cars

The use of electric vehicles is expected to be one of the solutions to address the problem of air pollution caused by motor vehicle emissions in Indonesia. Therefore, the government continues to encourage the public to switch to more environmentally friendly electric cars.

 

The Indonesian government has already issued policies to promote the widespread use of electric vehicles. For instance, President Joko Widodo signed Presidential Regulation (Inpres) Number 7 of 2022, which mandates both central and regional government institutions to adopt battery electric vehicles (BEV) for official or personal use. Previously, Presidential Regulation (Perpres) No. 55/2019 on the Acceleration of Battery Electric Vehicle (BEV) Programs for Road Transportation had been enacted.

 

President Joko Widodo has also announced plans to provide incentives for electric vehicles in 2024, aimed at stimulating the development of the Battery Electric Vehicle (BEV) industry ecosystem. It's worth noting that support for such ecosystems is also being pursued in other countries like the United States, Europe, and China, as well as our neighboring nations such as Vietnam, Thailand, and Malaysia. Furthermore, the government is actively encouraging ecosystem development by constructing public Electric Vehicle Charging Stations (SPKLU) and Battery Exchange Stations for Electric Vehicles (SPBKLU).

 

Will Electric Cars be Indonesia's Future Cars?

Many countries around the world, including Indonesia, are seeking environmentally friendly transportation solutions. In line with the government's commitment to the Paris Agreement to reduce the impacts of global warming, the national automotive industry has embraced the understanding that future vehicles in Indonesia must meet two main criteria. First, they must have low emissions and be environmentally friendly. Second, they must reduce the use of fossil fuels and transition to more sustainable energy sources, such as biofuels or other renewable energy sources.

 

According to the Chairman of GAIKINDO, Yohannes Nangoi, vehicles with electric motors like Hybrid Electric Vehicles (HEV), Plug-In Hybrid Electric Vehicles (PHEV), Battery Electric Vehicles (BEV), Fuel Cell Electric Vehicles (FCEV), or other vehicles that use hydrogen as fuel are the future of motorized transportation (Source: Gaikindo). Additionally, the Indonesian automotive industry currently offers electric vehicles for both passenger and light commercial use across various price ranges, from Rp 200 million to over Rp 600 million. The availability of various brands and models of electric vehicles indicates that consumers have multiple options to choose from.

 

Moreover, during the GIIAS 2022 event, there was significant consumer enthusiasm for electric cars, as a total of 1,594 electric vehicles were sold over the 11-day duration of the event. The GIIAS 2023 event, themed "Future Now," also featured a lineup of electric cars from various automakers.

 

Based on information from otomotif.antaranews.com, Moeldoko, the Chairman of Kendaraan Listrik Indonesia (Periklindo), stated that the electric vehicle ecosystem and industry in Indonesia are poised for significant and rapid growth due to the implementation of various government policies and positive market developments. Currently, the number of electric vehicle users is increasing, but it has not yet been matched by the availability of vehicles, resulting in many consumers having to wait or pre-order products. Nevertheless, the high demand for pre-orders of electric cars can be seen as a positive sign that the market in Indonesia is set to expand.

 

Read Also: List of Electric Car Rental Prices in Jakarta

 

From the explanation above, it can be understood that electric cars play a crucial role in the future of Indonesia's automotive industry. Although there are still various challenges to overcome, several factors indicate that electric mobility has significant growth potential in Indonesia. In the long term, the adoption of electric cars in Indonesia is expected to bring environmental benefits by reducing air pollution and dependence on fossil fuels.

 

This is the information we can provide about the prediction that electric cars will be the future of transportation in Indonesia. Currently, many car rental companies in Indonesia offer electric cars, and one of them is MPMRent. If you are interested in using a more environmentally friendly vehicle, MPMRent can provide it for you.

 

MPMRent is a professional car rental company that offers flexible car rental services, allowing you to choose between daily, weekly, or monthly rentals. For more information about short or long-term car rental services from MPMRent, please contact us.