The development of the electric vehicle ecosystem in Indonesia requires a holistic strategy. Incentives are an important key that will smoothen the creation of such ecosystems.
By
ADITYA PUTRA PERDANA
·4 minutes read
JAKARTA, KOMPAS — The shift from vehicles using fuel to electric vehicles is increasingly necessary. Apart from the sake of a cleaner environment, there is also pressure from fluctuations in fossil energy commodity prices. There are challenges in high vehicle prices, especially electric cars, so a holistic strategy is needed.
President Director of the State Electricity Company (PLN) Darmawan Prasodjo, when delivering a keynote speech in the discussion "Traveling the Roadmap for the Utilization of National Electric Vehicles" in Jakarta on Tuesday (11/10/2022), said the switch to electric vehicles does not shift the dominance of certain countries that control manufacturing to other countries.
"However, this shift is how to build our national capacity. By reducing imports [of oil fuel], we accelerate economic growth. If oil imports, which are around Rp 300 trillion (US$19.5 billion) to Rp 400 trillion per year, are shifted to a domestic basis, growth could reach 7 percent," said Darmawan.
The development process is holistic. There is nickel (battery raw material), which previously could be exported but now must be processed domestically or downstreamed. There are also investments that can increase laborers which are expected to reduce poverty. Thus, energy security increases while building capacity.
“This is not without challenges. So, we have to face it together. [We need to] map out the details [plan for the development of electric vehicles] and it also becomes a record for the PLN, the government and all stakeholders," said Darmawan.
A number of speakers in the discussion were Head of the PLN Center of Excellence, Zainal Arifin; Executive Director of the Institute for Development of Economics and Finance, Tauhid Ahmad; Chairman of the Indonesian Consumers Foundation, Tulus Abadi and Director of Air Pollution Control at the Environment and Forestry Ministry, Luckmi Purwandari.
[We need to] map out the details [plan for the development of electric vehicles] and it also becomes a record for the PLN, the government and all stakeholders.
Other speakers were Electricity Coordinator of the Directorate General of Electricity at the Energy and Mineral Resources Ministry Wahyudi Joko Santoso and Kompas daily automotive journalist, Dahono Fitrianto.
Zainal said that based on the road map, last year the PLN targeted to build 105 units of public electric vehicle charging stations (SPKLU), but the realization reached 150 units. As for this year, there will be an additional 110 units built so that by the end of the year it is hoped that a total of 260 SPKLUs will have been built.
Building market
Tauhid said that the switch to electric vehicles is a necessity. Therefore, it is necessary to continue to encourage the supporting infrastructure. The battery industry started with the Indonesia Battery Corporation (IBC). It is necessary to encourage the electric car industry so that more and more manufacturers in the world are interested in opening factories in Indonesia. It will also increase laborers and boost the economy.
"In order to be noticed by consumers, the market needs to grow bigger. Prices and incentives for consumers need to be kept in mind,” said Tauhid.
According to Tauhid, efforts to attract citizens' interest in electric vehicles need to be accelerated, for example by relaxing the luxury goods sales tax (PPnBM) as has been done by the government in the context of recovering the impact of the COVID-19 pandemic. Another example is the waiver of car ownership document fees to zero percent, which is linked to local taxes.
Meanwhile, Tulus said, the most important thing for consumers is what benefits can be obtained by switching to electric vehicles. The price must be ensured that it is cheaper and more efficient than fuel-based car prices. There must be fiscal and non-fiscal incentives. Consumers must also receive other facilities.
Efforts, such as easing the PPnBM, must be encouraged. "Because, it is ironic when we are encouraged to use an electric vehicle, but it is categorized as a luxury car. Of course consumers who can't afford it will withdraw," said Tulus.
Luckmi said that fossil fuels are one of the limited natural resources that cannot be renewed, so we need to shift to renewable energy. From January to July 2020, for example, during the COVID-19 pandemic, there was a 15 percent decrease in atmospheric particulates 2.5. This means that when vehicle mobility decreases, air quality improves.
"However, we also have to be wise because if there are more [private vehicles] it will create traffic jams. Electric vehicles need to be encouraged first for mass transportation, as well as making people aware of using these mass public transportation vehicles," she said.
Dahono added that concerns about the ability of electric cars have reduced. Last month, during his Jakarta-Bali trip, an SPKLU was available at Santika Hotel. However, in the future, when there are more electric cars, the availability of SPKLUs must be ready, considering that the charging process takes time.