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Indonesia s Incentive Policies on Electric Vehicles: The Questionable Effort from the Government

Author

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  • Mailinda Eka Yuniza

    (Faculty of Law, Universitas Gadjah Mada Yogyakarta 55281, Indonesia.)

  • I Wayan Bhayu Eka Pratama

    (Faculty of Law, Universitas Gadjah Mada Yogyakarta 55281, Indonesia.)

  • Rahmah Candrika Ramadhaniati

    (Faculty of Law, Universitas Gadjah Mada Yogyakarta 55281, Indonesia.)

Abstract

This study seeks to solve the problems in the development of electric vehicles in Indonesia and focuses on incentive policies with related theories compared with other countries. As an effort to realize an environmentally friendly industry, electric vehicles have become a global trend for states to develop, including in Indonesia. Electric vehicles as new discourse in Indonesia needs great support from the Government. In 2022, Indonesia itself targets the first production of domestic electric cars. In 2025, electric cars in Indonesia are targeted to reach 20% of the market. In this case, the Indonesian Government has sought to provide incentives for accelerating the development of electric vehicles through President Regulation Number 55 of 2019 regarding the Acceleration of the Battery Electric Vehicle Program for Road Transportation. However, this policy has not yet become a trigger mechanism for the public to switch to electric vehicles. The determinant factor for this adversity would be; there is a lack of incentives offered by the Government that can be obtained by the consumers. The author finds that the incentive policy provided through Government Regulation is still questionable because it has not been able to trigger the public to switch to electric vehicles.

Suggested Citation

  • Mailinda Eka Yuniza & I Wayan Bhayu Eka Pratama & Rahmah Candrika Ramadhaniati, 2021. "Indonesia s Incentive Policies on Electric Vehicles: The Questionable Effort from the Government," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 434-440.
    • Handle: RePEc:eco:journ2:2021-05-49
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    References listed on IDEAS

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    4. Langbroek, Joram H.M. & Franklin, Joel P. & Susilo, Yusak O., 2016. "The effect of policy incentives on electric vehicle adoption," Energy Policy, Elsevier, vol. 94(C), pages 94-103.
    5. Breetz, Hanna L. & Salon, Deborah, 2018. "Do electric vehicles need subsidies? Ownership costs for conventional, hybrid, and electric vehicles in 14 U.S. cities," Energy Policy, Elsevier, vol. 120(C), pages 238-249.
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    Cited by:

    1. Muhammad Habiburrahman & Rahmat Nurcahyo & Azanizawati Ma’aram & Kaoru Natsuda, 2024. "Driving the Transport Electrification: Exploring Stakeholders’ Perceptions and Actions in the Indonesian Automotive Industry Transition to Electric Mobility," Sustainability, MDPI, vol. 16(14), pages 1-20, July.

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    More about this item

    Keywords

    Energy; Electric Vehicle; Incentives; Transportation; Indonesia.;
    All these keywords.

    JEL classification:

    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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