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Jakarta Post

Technology, regulation key to driving xEV adoption in Indonesia: Seminar

  • Adrian Wail Akhlas

    The Jakarta Post

PREMIUM
JAKARTA   /   Wed, November 27, 2019   /  02:37 pm
The Jakarta Post Image
A worker polishes a windshield on the assembly line of the Baojun E200 electric vehicle (EV) at the SAIC-GM-Wuling plant in Qingdao, Shandong province, China.(Reuters/Stringer)

Technological mastery and regulatory incentives were needed to drive consumer adoption of electrified vehicles (xEVs) and support President Joko "Jokowi" Widodo’s commitment to turn the country into an xEV industry hub. Associate partner Rahul Gupta of McKinsey & Company said that the current total cost of ownership (TCO) for xEVs in Indonesia was higher than the TCO for internal combustion engine (ICE) vehicles due to the government's fuel subsidy, which made electrified vehicles less competitive than ICE vehicles. "Significant reduction in battery costs will drive down the ownership cost of xEVs and will make it more competitive against ICE [vehicles]," Gupta said in his presentation on Tuesday at a seminar on xEVs in Jakarta. "Regulatory support is instrumental to triggering xEV adop...