Indonesia Electric Vehicle – We have talked a lot about the importance of renewables and it’s application in the future of energy. So, how do we fare in Indonesia? Well, quite good and quite much, but there are many rooms for improvement for us to take these to the next level.
The Indonesian energy reliance on coal and oil, is of course understandable – even the countries such as United States or United Kingdom and even Germany – who were leading the world in the initiative of reducing the carbon footprint and especially doing it en-masse, were still fracking their oil.
So, one of the most crucial invention to reduce carbon foot print for the masses is through the adaptation of electric vehicle – EV. Indonesia Electric Vehicle is currently also developing and growing strong. Although it hasn’t been on the point where we want it to be, it still interesting to see where we can go.
The Electric vehicle itself, isn’t really a popular mode of transport yet. This is because, there are many factors that could be problems for some – but for us, it’s the opportunity for growing your business by offering innovations there, who knows after reading this, you were inspired to fill the gap!
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Indonesia Electric Vehicle is Electric Façade
Based on searches alone, the electric vehicle or more importantly – the renewables based transportation is becoming popular on early 2012-2014. This is because, the then-mayor of Solo – Joko Widodo, campaigned and promotes himself as the supporter of Indonesia Electric Vehicle.
The mentioned Indonesia Electric Vehicle is ESEMKA, the car created by a group of vocational students in Solo area, central Java. They were a source of amazement, but still isn’t practical and industrious enough to be produced en-masse. But the concept of electric vehicle has appeared and popular in Indonesia.
The main problem with this, is that the electric vehicle mostly becomes a façade rather than a real functioning concept that drives innovation. The incumbent president – also Joko Widodo, is still mostly choosing to focus his attention on the economic efficiency rather than innovation.
Thus, the Indonesia Electric Vehicle became just that: an electric façade to convince people that the government is sustainability conscious and strong advocate for sustainable investments. The actual thing to be done has yet to manifest.
The most recent news about ESEMKA is mostly political, highlighting not the vehicle or the fact that it is fueled through the relatively renewable fuels – it is only serve as a vehicle for political messages and purposes only.
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The Real Development
The Badan Koordinasi Pengawasan Modal/BKPM – ‘The (Governing) Body of Capital Security’, has released some of it’s more ambitious plan since Joko Widodo entered his second term as Indonesia President. The Ministry of Energy and BKPM has tried several times to either enact the Public Private Partnership to roll the Indonesia Electric Vehicle.
Some private actors have started to materialize the settlement themselves. The taxi company – BlueBird Group has used many electric vehicles as their taxi as promotion stunt, but also to cut costs and make a unique selling point for themselves.
The Indonesia Electric Vehicle industry is also trying to contact Hong Kong and also the heavyweight of electric vehicle: Tesla, to drum up investments and try to persuade many local companies to immediately implement the electric vehicle as soon as possible.
The BKPM and Ministry of Energy has estimated that in 2030, Indonesia will have 400.000 more driving – functioning electric vehicle and 1000 points of recharging in Jakarta alone. The 400.000 of it isn’t specified to be the Indonesia’s own brand, it could also be imported cars.
Hype and Problems Indonesia Electric Vehicle
The main problems with the electric vehicle is that, it isn’t necessarily or rather, automatically environmentally friendly. The electric cars uses batteries, and the crucial component that has to exist in every battery is lithium. Thus Indonesia Electric Vehicle relies on that.
Indonesia do have lithium reserves as natural resources, but it didn’t really help that the process of lithium mining itself is a very heavy pollutant maker. There can be no other way that is fresher or less producing the smokes, CO2, and Carbon Monoxide in mining process for Lithium.
And also, the Indonesia Electric Vehicle infrastructures were very centered and focused in Jakarta. The main reason is that, it is the place where the most people who could buy it resided. The infrastructure that we have mentioned includes the production, charging, and spare part availability.
Roads were also another factor that Indonesia hasn’t manage to build proper electric cars. These electric cars were mostly luxurious sedan, while many of the Indonesian transport were out of suburbs into the village, and mostly off-road type of areas.
For example, driving Indonesia Electric Vehicle is pretty much impossible in roads between central Java small – inner cities. This is because, the vehicles themselves were often a product of the local establishments, and thus didn’t really there to support the electric vehicles.
Also, the electrical vehicles pales in comparison to oil-based vehicles in term of accessibility. Yes, you might found the electric vehicle to be comparably cheaper in the long-run. But you have to pay double or triple the rate you’ll receive up front in purchasing the electric vehicle.
The Indonesia Electric Vehicle industry were also overwhelmed by the political affiliations of it’s leaders. They were often prefer the oil based transportation modes because of their involvement in the government policies, and their stake in the industries they were in.
These are mainly the reasons why the Indonesian EV community and industry haven’t been able to grow significantly in the last 5 years. But luckily, the hype is still strong and we are very much capable both to afford and to maintain these vehicles.
The Indonesia Electric Vehicle is on the rise again, thanks to the hype provided by the meeting of Tesla executives – including the CEO, Elon Musk – with the Ministry of Ocean and Investment Coordination – Luhut Binsar Pandjaitan. The meeting happened in the Tesla office in United States.
Whether or not the Indonesia Electric Vehicle will be for sustainable amount of years, Indonesia is on the track to build more factories and co-operations to set up electric vehicles businesses. The open government, and the supportive business side could signal that this is something we could positively expect.
Consulting Business in Indonesia? Contact Whatsapp +62 877-7180-0222