Green energy ecosystem: Boosting electric vehicle adoption
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Ekosistem energi hijau: Memacu adopsi kendaraan listrik
6 June 2023
By: Khadijah Shahnaz
Fourteen private corporations and state-owned enterprises (SOEs) are collaborating in Electric Mobility Ecosystem Association (AEML) to accelerate electric vehicle adoption in Indonesia.
A new history has been made by the SOEs and the private companies in large scale in the adoption of electric vehicles in Indonesia.
In Jakarta on Monday (5/6), the SOEs and the private companies agreed to establish AEML to realise the use of 1 million four-wheeled electric vehicles and 3 million two-wheeled electric vehicles in 2035.
Several SOEs and private companies have become the members of AEML. They consist of PT Adaro Power, PT energi Kreasi Bersama, PT Energi Selalu Baru, PT GOTO Gojek Tokopedia Tbk, PT Ilectra Motor Group, PT Indonesia Baterai Cooperation, PT Operator Kendaraan Listrik Indonesia, PT OYIKA Powered Solutions, PT Pertamina Power Indonesia, PT Sepeda Untuk Indonesia, PT Swap Energi Indonesia, PT TBS Energi Utama Tbk, PT Utomo Chargeplus Indonesia, and PT Wika Industri Manufaktur.
AEML Chairperson Dannif Utojo Danusaputro said that the association was established as a vessel for pioneers in the battery electric vehicle industry and the electric mobility ecosystem support industry in Indonesia.
Besides that, AEML was established as a vessel for the collaboration and the sharing of various practices regarding the electric mobility ecosystem.
Moreover, the association was established due to the high interest of the people in battery electric vehicles. However, Dannif, who is also the CEO of Pertamina New and Renewable Energy, realised that the acceleration of battery electric vehicle adoption needed a balanced electric mobility infrastructure development.
“We believe that the acceleration of electric vehicle adoption needs to be in line with its supporting infrastructure growth. With security and ease [of use] as the main focuses, we can boost adoption by the people,” he stated.
He noted that battery electric vehicles were a new focus of various institutions, including the SOE Ministry.
Pertamina with its subholding, Pertamina New & Renewable Energy, are continuously campaigning various strategies to develop battery packs and supporting facilities for the electric vehicle ecosystem.
For example, he mentioned that Pertamina had more than 7,400 gas stations, 6,100 Pertashop units, and 63,000 LPG outlets. With those infrastructures, Pertamina is ready to collaborate with other parties from various other countries to develop existing infrastructures to support the realisation of the electric vehicle ecosystem in Indonesia.
Dannif revealed that AEML had two main purposes, namely education (literacy) and safety infrastructure (safety). He sees that both aspects need to be improved due to the increase in electric vehicle demand from the people.
Besides that, AEML is also supporting financing programmes from SOE banks for electric vehicles. Currently, Bank Mandiri, BNI, and BRI are providing financing for electric vehicles.
As the prices of electric vehicles are relatively more expensive, he added that financing from SOE banks could be an alternative.
“As far as I know, several months ago, there was no competitive financing. Now, AEML is boosting financing through banks to compete against conventional vehicles,” Dannif said.
He also believes that the abundance of electric vehicle infrastructures will accelerate electric vehicle adoption by the people.
“For the safety factor, we will boost electric vehicle utilisation in the long term and the change in the people’s behaviour that is increasingly pro towards electric vehicles,” Dannif said.
During the occasion, Indonesia Chamber of Commerce and Industry (Kadin) Chairperson Arsjad Rasjid appreciated the establishment of the association that has become the meeting point of companies in the national electric vehicle ecosystem.
He welcomes the 14 members of AEML that represent the battery industry, battery electric vehicle manufacturers, charging and battery-swapping infrastructures, and supporting business players, such as battery, electric vehicle component, electric vehicle charging station, and public battery swapping station companies.
“I appreciate AEML as an inclusive vessel for business players in the electric vehicle industry and supporting business players, such as battery, electric vehicle component, electric vehicle charging station, and public battery swapping station companies,” he said.
Arsjad, who is also the Chairperson of AEML Supervisory Board, stated that he was ready to support the new association.
According to him, Indonesia has a target to achieve net zero emission in 2060, or even earlier. One of the efforts is to develop the battery electric vehicle ecosystem in Indonesia.
With AEML, Arsjad hopes to realise the use of 1 million four-wheeled electric vehicles and 3 million two-wheeled electric vehicles in 2035.
He reckoned that it would positively impact the environment as it would reduce carbon emission in Indonesia.
Online sales
On another occasion, Tokopedia, the e-commerce of PT GoTo (Gojek Tokopedia) Tbk recorded that electric vehicle sales doubled in the first quarter of 2023 from the first quarter of 2022.
Tokopedia Category Development Associate Vice President Fransiscus Leo Chandra said that there were several components that are selling like hotcakes online.
Tokopedia’s internal data shows that ECUs (electric control units) and battery chargers for electric cars and motorcycles will be several products related to electric cars and motorcycles that will be in demand in the first quarter of 2023.
Regarding the orders, Medan in North Sumatra, Pekanbaru in Riau, Bogor in West Java, Sleman in Yogyakarta, and Badung in Bali are some of regions that have the highest increase in electric car buyers. The average increase is around double in the first quarter of 2023 from the first quarter of 2022.
Tangerang in Banten, Malang in East Java, Palembang in South Sumatra, Badung in Bali, and Balikpapan in East Kalimantan are regions that have the highest increase in electric motorcycle buyers.
“On average, the increase is around 6.5 times in the first quarter of 2023 from the first quarter of 2022,” Leo said in his official statement on Monday (5/6).
He reckoned that the electric vehicle use trend in Indonesia was boosted by various supporting infrastructures, such as charging stations that are scattered in various regions in Indonesia as well as various policies that facilitate electric vehicle users.
“Besides that, there are more automotive companies that produce affordable eco-friendly electric vehicles, so there are more people who are shifting to electric cars and motorcycles,” Leo explained.
