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View all search resultsElectrification drive needs stronger political will, ‘long-term strategy’
Shifting from fuels to electricity for powering households and transportation is a logical response to Indonesia’s dependence on energy imports amid the Mideast crisis, but experts say the success of electrification hinges on sustained policy support.
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A woman walks past a BYD sign on Jan. 27 outside an electric vehicle dealership on Jl. Sudirman in Central Jakarta. (JP/Iqro Rinaldi)
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resident Prabowo Subianto’s push for electrification in transportation and households to cut reliance on fuel imports requires sustained policy support and coordinated execution across ministries, experts say.
While electrification will not alleviate the current oil supply shock, the Middle East crisis does highlight Indonesia’s exposure to global energy markets and reinforces the need to replace fuel-powered vehicles and appliances with electric alternatives.
“Electric vehicles are the right strategy if Indonesia does not want to keep repeating oil crises,” Putra Adhiguna, managing editor at the Energy Shift Institute (ESI), told The Jakarta Post on Friday.
Incentives remain critical in the early stages of electrification to build market adoption and scale, but must be “carefully evaluated” based on the experience with past programs, he said.
Read also: Fiscal fears grow as high oil price strains state budget
“Subsidies are important to form the initial market; then the government must ensure charging infrastructure is ready, while automakers compete on price and increase domestic production.”
The government began promoting electrification in 2019 when it also aimed to position Indonesia as a global electric vehicle (EV) hub by leveraging vast nickel reserves, supported by a range of tax incentives to attract investment and accelerate domestic adoption.
