Electric Car Development in Indonesia, Academics: Many Policies Overlap!
5/27/2022
Industrialization of electric cars is not an easy job, apart from sucking up state resources in the form of a budget, it also prepares the market as well as the readiness of human resources. In fact, electric cars are considered as part of efforts to reduce carbon emissions.
One of the sectors that is often targeted as the basis for the problem of high carbon emissions is the automotive industry. As a country that has agreed to a global target for reducing carbon emissions, Indonesia must find a way to make the automotive industry transform.
One of the sectors that is often targeted as the basis for the problem of high carbon emissions is the automotive industry. As a country that has agreed to a global target for reducing carbon emissions, Indonesia must find a way to make the automotive industry transform.
In the end, the automotive industry must follow the current global trend of electrical technology. As a benchmark for reducing carbon emissions, the automotive industry and other modes of transportation are currently the third largest contributor.
Accordingly, since three years ago, the government has formulated an umbrella policy for the development of the battery-based automotive industry. This is stated in Presidential Regulation No. 55/2019.
Now, various derivative policies have been issued. All regulations aim to spark market and electric motor vehicle industry initiatives, ranging from tax facilitation by exempting PPnBM, loosening import duties, fiscal incentives for investment, to ease of administration and registration of the use of electric vehicles.
In fact, in the road map for the Electric Motor Vehicle Industry, the government has set targets for market development and production. To be successful, the government pioneered the use of electric motorized vehicles in tourist areas, and provided a budget for the purchase and rental of electric vehicles.
To be honest, the market penetration of electric motorized vehicles, especially four-wheelers, is starting to grow. Gaikindo's statistics show that 1,020 electric-based cars were sold during the January-April 2022 period, consisting of HEV, PHEV, and BEV. This amount is equivalent to 0.3 percent of the total wholesales in the same period.
However, if we look further, the population of products that use pure electric technology ( battery electric vehicle / BEV) is still quite rare. BEV sales were only around 163 units during the first four months of this year.
The price is much more expensive even though it is supported by various facilities and fiscal facilities, it is still the main obstacle. The average BEV price is still around Rp. 500 million for sedans and hatchbacks .
On the other hand, the fattest market in Indonesia is currently around Rp. 300 million with MPV and SUV types. Another problem is that there is not much supporting infrastructure for BEV which is still centered in Greater Jakarta and big cities.
Further problems, with a population that is difficult to grow without a radical policy breakthrough, the drive for the transformation of the automotive industry will not be significant in efforts to reduce carbon emissions.
Indonesia will stumble in achieving its target of zero carbon emissions by 2060 from the automotive industry perspective. Moreover, if it is not accompanied by massive conversion of power generation sources, which until now the majority have relied on coal.
This is also highlighted in Prof. Wiwandari Handayani, Professor of Urban and Regional Planning at Diponegoro University (Undip). In his research related to emission reduction policy strategies, it can be concluded that policies related to EV development are part of a major strategy for reducing carbon emissions.
Research conducted by Wiwandari compares policy routes from several Asian countries in reducing carbon emissions. From this research, it is known that Asian countries that are still leading in reducing emissions include China, India, and Thailand.
In these countries, mapping of emission control issues is carried out through the synergy of many parties, especially industry, academia, and the government. As a result, the mapping of emission issues becomes a reference for the transformation of each industrial sector.
For example, China has locked down its emission issues related to the use of coal and fossil fuels, focusing on fiscal facilitation and subsidies policies to attract renewable energy investors as well as stimulate product markets.
China has also succeeded in harnessing the power of industry, one of which is the automotive sector to support the birth of the electric car industry, starting from components, mastering battery technology, to car manufacturing.
The Chinese government is fully stimulating the EV market. Discounts and subsidies are provided by the government for consumers, including massive investment in supporting infrastructure.
This detail should be a lesson. EV industrialization is not an easy job, besides sucking up state resources in the form of a budget, it also prepares the market as well as the readiness of human resources.
On the other hand, said Wiwandari, the Indonesian government's policies often clash between levels and agencies. "Many policies overlap," he said on the sidelines of the National Seminar with the theme "100 Years of Indonesia Automotive Industry, Realizing Indonesia Net-Zero Emission" which is a series of collaborative activities between Toyota Indonesia 7 universities in EV-related research, Wednesday (25/05). 5/2022).
