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View all search resultsBiofuel, not EVs, closer destination in car industry growth path
While biofuel vehicles can be refueled through existing gas stations, Indonesia needs to build some 31,000 commercial charging stations over the course of 10 years to reach its EV goals.
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W
hile the government has accelerated efforts to make the country a global hub for electric vehicle (EV) batteries, biofuel-based transportation is seen as a more immediate game-changer in Indonesia’s automotive industry.
Febby Tumiwa, the executive director of the Institute for Essential Services Reform (IESR), said from 2025 to 2030, 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 battery and biofuel development, but after that, EVs will be the dominant trend among the public,” Febby told The Jakarta Post.
He said the government might need a clear timeline to phase out biofuel, such as by not creating new plantations or refineries and by making palm oil products for other industries, should EVs became preferable option in the automotive industry.
The government has shown greater interest in the EV battery industry in the past few years and ramped up efforts to issue regulations and find international partners to realize its vision.
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 2020, 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.
