PROJECT DESCRIPTION
The Government of Indonesia aims to promote EV deployment and production in Indonesia. In 2019, the President issued regulation number 55/2019 on the Acceleration of EV for Road Transportation. The regulation aims to establish a domestic EV manufacturing industry, including batteries and charging stations. The promotion of electric transportation is a key strategic priority under Indonesia's National Medium-Term Development Plan, 20202024, and line ministries are tasked with developing the implementing regulations related to road licensing (Ministry of Transport), battery and charging station standards, and electricity tariffs for EV charging (Ministry of Energy and Mineral Resources), import regulations (Ministry of Industry), and financial incentives (Ministry of Finance).
The government's new strategy on promoting electric transportation aims to decrease the number of fossil-fueled vehicles to reduce emissions from combustion engines including carbon dioxide, nitrogen oxides, and sulfur oxides. Nitrogen oxides and sulfur oxides negatively impact air quality and health. In addition, the government is seeking to reduce oil consumption growth and oil imports to enhance energy security. Finally, the government intends to promote an innovative new technology and ensure that Indonesia is included in the new automotive production chain by increasing its local manufacturing capacity for EVs.
At present, EVs cannot be road licensed in Indonesia as the implementing guidelines for the Presidential Regulation 55/2019 are still for approval by the respective line ministries. There are only 57 charging stations installed in 35 locations in Indonesia, and most of them are not fast-charging stations; but simple 220 volts for household connections to the grid are available in the majority of households. The TA will assess the government's plan to build 1,000 charging stations for an expected addition of 2,200 electric cars, 711,000 hybrid cars, and 2.13 million electric motorcycles by 2030.