Indonesia Committed to Developing Electric Car Industry
"This radical change is not easy. However, most importantly, we see that the government has committed to the development of electric cars," Moeldoko noted in a written statement on Wednesday.
He made the statement during a visit to the Wuling Motors Factory in the Greenland International Industrial Center (GIIC) area in Cikarang, West Java, on Tuesday.
According to Moeldoko, Indonesia was expanding the adoption of electric cars through development of the industry. Currently, infrastructure for domestic electric car production continues to be developed.
In addition, automotive industries from Japan and China also demonstrated their seriousness to invest in the electric car industry in Indonesia.
However, Indonesia’s electric car industry faces tough challenges. According to data from the Association of Indonesian Automotive Industries (Gaikindo), 1,900 electric cars were sold in Indonesia in the first semester of 2021 as compared to 1,234 units during the corresponding period last year. In fact, the Indonesian market is quite huge according to the conventional car sales.
A survey by Solidiance management consultant indicated three factors behind the low interest for electric cars among Indonesians in 2018.
These factors comprised the limited cruising range of electric vehicles, the lack of Public Electric Vehicle Charging Stations (SPKLU), and the price of electric cars that tended to be costlier than conventional cars.
Moeldoko affirmed that the government had been proactive in addressing the problem. President Joko Widodo has signed Presidential Decree No. 55 of 2019 on acceleration of the Battery-Based Electric Motor Vehicle Program for Road Transportation.
In March 2021, the KSP, in collaboration with the Coordinating Ministry of Maritime Affairs and Investment, had disseminated information on the program for the use of electric cars in ministries and institutions through the Battery-Based Electric Motor Vehicle (KBL-BB) Program.
The KSP had also highlighted the importance of shifting towards an electric car industry with renewable energy sources. Electric cars are the solution to reduce fossil fuel consumption and improve the quality of the environment and air. Moeldoko is optimistic that Indonesia would be able to increase opportunities to become a production and export base for KBL-BB.
Meanwhile, the Ministry of Transportation has compiled a Roadmap for K/L Operational Vehicles and Public Transportation from ICE Vehicles (Internal Combustion Engine) to KBL-BB.
The Ministry of Energy and Mineral Resources (ESDM) along with the State-owned Electricity Company (PLN) were appointed to build supporting infrastructure in the form of SPKLU.
As of April 2021, some 112 SPKLU units were built at 83 locations in Indonesia. In addition, PLN has prepared various stimuli to increase market interest in using KBL-BB.
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