Investor Presentaiton
Recommendation
Indonesia Electric Vehicle Outlook 2023
The government needs to enact several regulations and take actions to promote EV adoption and
further decarbonize the transport sector
Indonesia could learn from India's Faster Adoption and Manufacturing of
Electric Vehicles (FAME) to incentivize EVs. Incentives should include specific
parameters related to EV performance as considerations for giving incentives,
such as motor power, battery capacity, distance traveled on a single battery
cycle, and top speed to force the industrial sector to adopt the most recent
technology. Higher performance makes the EVS eligible for more discounts.
Incentives for public transportation could also be designed to get more
discounts than private vehicles.
• The government should prioritize EV incentives for public transportation,
E2W (new build or retrofit), and charging infrastructure. Public transportation
incentives are intended to further support decarbonization strategies by
making the shift strategy more attractive and affordable. Incentives for E2W
might significantly benefit those who use it to earn a living, such as ride-hailing
or logistic drivers, as the driver can save more money for the user and a quicker
payback period from the government. Providing incentives for investment in
charging infrastructure has been proven to be 4-7 times more effective than
direct EV incentive programs. The government must take the lead in driving
infrastructure investment in key locations.
MWh
Battery waste potential based on certified EVs historical data
400
300
200
100
40.84
7.33
10.32
11.2
4.21
4.63
0.42
332.72
2023
2024
2025 2026 2027 2028
2029
2030
LFP
NMC
Sources: IESR analysis
• The mandatory of three charging ports in SPKLU needs to be changed to one standard port in Indonesia to encourage investment in charging stations. Standardization
of battery size, shape, and other electrical specifications is also necessary for SPBKLU to allow interchangeability across brands. The government can start by formulating
the battery standard specifications and the interchangeability of the battery in the ministerial regulation.
• The government needs to enact regulations to address the accumulation of EV battery waste. It is estimated that the battery waste could reach 410 MWh by 2030. The
three options to handle this challenge are disposal in a junkyard, extraction of the raw materials, and refurbishing the battery so that it can be used as a stationary
energy storage system in various applications.
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