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Analysis: Govt sets ambitious EV target for 2024 as adoption below par
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A man inspects the interior of a BYD Atto 3 model at a BYD product launch event in Jakarta on Jan. 18, 2024. (JP/Aditya Hadi)
T
he Indonesian government has major work ahead for its electric vehicle (EV) ambitions as fewer than 1,000 units of fuel-based motorcycles were converted to electric ones in 2023, falling far short of the 50,000-unit target. For 2024, a more ambitious target of 150,000 units has been set, a feat the government hopes to achieve through a multitude of approaches. Concurrently, the government appears to be prioritizing investments from foreign carmakers to boost the domestic adoption of electric cars.
In a recent press briefing, Energy and Mineral Resources Minister Arifin Tasrif admitted to feeling ashamed of last year's results of the electric motorcycle conversion program. According to him, the ministry did not expect such results because many people had registered for the program.
Consequently, the program's lackluster results have impacted its budget absorption, with only Rp 4 billion (US$255,820) utilized from the allocated Rp 350 billion. Despite this, the ministry aims to maintain the program's budget availability.
To encourage the public's shift from fuel-based motorcycles to electric motorcycles, reports state that so far the government has increased promotional and collaboration efforts with various ministries, agencies and state-owned enterprises (SOEs) – an approach they intend to continue.
In addition to these efforts, other measures involve building infrastructure for electric motorcycles, including 932 public EV charging stations (SPKLU) and 1,772 public EV battery exchange stations (SPBKLU), as well as increasing the subsidy for electric motorcycle conversion from Rp 7 million to Rp 10 million. This subsidy, targeting not only individuals but also government and non-government institutions, remains in effect from late 2023.
Despite these efforts, Arifin explained that there was a need for further improvement in the administrative bureaucracy of electric motorcycle conversion so that payments could be made quicker and supporting services, such as electric motorcycle conversion workshops, could be expanded.
Energy and Mineral Resources Ministry Conservation director Gigih Adi Utomo had previously cited insufficient promotion, relatively high prices and public concerns about electric motorcycle components, particularly the lifespan of batteries, as contributing factors behind the public's low interest in converting their fuel-based motorcycles to electric-based. However, he assured that warranties would be offered for electric motorcycle components, specifically batteries. In case of issues with its components, users could take their motorcycles to an electric motorcycle workshop for replacement.
