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EV to play greater role than biofuel in long run: Experts
Experts say Indonesia could benefit from its biofuel plan in the next decade but the government’s focus should be on the electric vehicle (EV) industry, as that would play a greater role in future transportation.
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The Energy and Mineral Resources Ministry is committed to having at least 786,586 electric vehicles on the road by 2025. (Shutterstock/buffaloboy)
T
he government has been sending mixed signals to the automotive industry as it looks to both electric vehicles (EVs) and biofuels for greener road transportation. Experts queried by The Jakarta Post recommend that Indonesia focus on EVs, as this technology would dominate in the long run, but they added that biofuel may play a major role at least in the next decade.
Febby Tumiwa, the executive director of the Institute for Essential Services Reform (IESR), said the government should have a clear timeline for phasing out biofuel in the transportation industry, as EV would be much preferred by vehicle producers and consumers in the future.
From 2025 to 2030, he went on to say, most people in Indonesia would still use vehicles with internal combustion engines (ICE), and the government would need to produce biofuel to fill the gap between domestic oil production and consumption without relying on imports.
“I think that, for the next 10 years, there won’t be a conflict between EV and biofuel development, but after that, EV will be the dominant trend among the public,” Febby told the Post on July 19.
A clear timeline, he said, would afford biofuel producers time to adjust to changing demand, such as by not creating new plantations or refineries and by making palm oil products for other industries instead of the automotive industry.
With the issuance of Presidential Regulation No. 55/2019 Indonesia has mapped out a plan for EV development as countries around the world aim to phase out ICE vehicles.
In December last year, by publishing its plan for battery-based electric vehicles, the Energy and Mineral Resources Ministry committed to having at least 786,586 electric vehicles on the road by 2025.
