03 Apr 2020

Bumpy Road for Indonesia’s BEV Development

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The transportation sector has the largest energy consumption in Indonesia. Moreover, this sector has a heavy reliance on fossil fuel. The sector accounted for more than 45% of final energy consumption in Indonesia in 2018 (ESDM, 2019). The share of non-fossil fuel is only 0.1%. Those facts make the transportation sector the second largest emission emitter from the energy sector, only lower than the emission from power plants (see Figure 1). Both sectors are still predominantly fossil-dependent sectors. Indonesia’s electricity is dominated by coal power plants, reaching 60% of the generation mix. The conditions above raise the question of whether Indonesia’s electric vehicles could reduce the emission or, otherwise, shift the emission from the road to power plant’s chimney. Thus, strategic plans and correct measures are required to develop electric vehicles (EV) effectively for emission reduction goals.

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