Driving Change: Electric Vehicles as Indonesia’s Sustainable Living Icons

The world is shifting towards sustainable transportations, with electric vehicles (EVs) hailed as essential in mitigating climate change due to their reduced carbon emissions. While several countries, such as China, Norway, and the United States of America, have made significant strides in popularizing EVs, Indonesia lags behind.

According to Drive.com, China leads globally in EV adoption, with annual new EV sales hitting 9.49 million in 2023 and an estimated 20 million EVs on the road by January 2024[1]. China's fast-paced adoption is bolstered by the government's pro-EV stance, offering special funds for innovation and promotion in the industry. Additionally, China’s decision to fully exempt EVs from purchase tax has made them more appealing and affordable to consumers[2].

In contrast, Indonesia had only 108,000 e-vehicles on the road by the end of 2023, as reported by Bisnis.com. The government targets 13 million e-motorcycles and 2 million e-cars on the road by 2030[3], with initiatives like purchase tax exemptions for EVs similar to China. To further drive EV adoption, PT PLN, the country's state-owned power company, has partnered with manufacturers such as Volta, Selis, and GESITS, along with the Indonesia Battery Corporation (IBC), to accelerate the EV industry growth and expand accessibility.[4] Top of Form

The Indonesian government and manufacturers understand the assignment; they need to quickly commercialize EVs to support Indonesia's ambition to achieve net-zero emission by 2060. In that case, why does EVs adoption in Indonesia remain sluggish?

According to CNBCIndonesia.com, three primary reasons for this reluctance were price, charging infrastructure, and awareness[5]. While tax exemptions have been offered, EVs are still perceived as expensive. Some people eventually find fossil-fuel cars more attractive as they have more budget-friendly options available. Additionally, the limited availability of charging stations, often mainly concentrated in metropolitan areas, deters potential EV buyers. Currently, Indonesia has only 10,682 charging stations⁶, mostly located in large cities. Furthermore, lack of awareness about EV capabilities and long-term benefits hampers adoption, which is understandable given the early stage of the market in Indonesia.

So, how can we encourage more people to embrace EVs?

Addressing these concerns requires a multifaceted approach that goes beyond traditional marketing strategies. While highlighting the environmental benefits of EVs is crucial, manufacturers need to emphasize other values that resonate with Indonesian consumers. When it comes to garnering support, crafting a compelling narrative is essential in a public relations work:

1. It’s not just about the upfront cost; it’s about long-term benefits: 

Many EV owners, especially in fast-adopting countries, stated long-term financial and environmental benefits as their primary reasons for switching from conventional fossil fuel vehicles. While EVs may initially seem more expensive, they represent a smart investment in the long run, leading to significant savings over time as they don’t need to constantly purchase fossil fuels. Moreover, by choosing EVs, individuals are contributing to a cleaner environment, which is a cause worth supporting. Emphasizing these financial and environmental benefits creates a compelling narrative that is more likely to inspire action.

     2. The industry is expanding with government support: 

While concerns about limited charging stations and limited aftersales service are valid, it is important to highlight that the EV industry is gaining momentum with strong backing from the Indonesian government. As Indonesia strives to meet its climate goals, collaborations between manufacturers are being pushed forward. With the government's plan to welcome Chinese EV manufacturers in the country, people can expect more charging stations and after-sales services will be made available in the future. Educating the public about government initiatives and manufacturer partnerships can further motivate greater EV adoption.

     3. Raising technical awareness:

The EV industry is still relatively new in Indonesia, with many people lacking familiarity with it. To bridge this gap, outreach initiatives involving EV owner communities, clubs, or dedicated individual are invaluable. By introducing these communities to the public, newcomers can be attracted to join an esteemed group dedicated to environmental stewardship through EV usage. These initiatives can translate into content sharing on social media or pushing promotions through automotive annual exhibitions, such as the Indonesia International Motor Show (IIMS) recently held in February this year.

These narratives represent key messages tailored to specific target demographics and cultural contexts. They serve as the foundation for engaging storytelling or community projects that foster stronger connections with potential consumers. By utilizing these narratives, manufacturers can effectively communicate the transformative potential of EVs and their role in creating a cleaner, more sustainable future.

[1] Dylan Campbell, Which country has the most electric cars in the world?, Drive.com (accessed Mar 19th, 2024)

[2] Raghav Bharadwaj, China’s EV Market: Opportunities, Challenges, and Future Scope, Bolt.earth (accessed Mar 19th, 2024)

[3] ⁶ Nyoman Ary Wahyudi, Jumlah Kendaraan Listrik di Indonesia 2024 Serta SPKLU, SPLU, dan Stasiun Penukaran Baterai Penopangnya, Bisnis.com (accessed May 19th, 2024)

[4] Rifky Syofiadi, IIMS 2024 Dibuka Hari Ini, PLN Perkuat Dukungan Ekosistem Kendaraan Listrik di Indonesia (Press Release), Pln.co.id (accessed Mar 19th, 2024).

[5] Aulia Mutiara Hatia Putri, Mobil Listrik Tak Laku, Ternyata Orang RI Maunya Ini, CNBCIndonesia.com

Author

DR. Widyaretna Buenastuti, SH, MM
Director - Senior Consultant
[email protected]

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