Indonesia’s Transition to Electric Vehicles Hindered by High Prices and Safety Concerns

Indonesia's electric car
Advertisement

The Indonesian Ministry of Energy and Mineral Resources (ESDM) recently revealed one of the reasons why the Indonesian public has not yet switched from gasoline-powered vehicles to electric vehicles (EVs).

According to Agus Tjahajana Wirakusumah, Special Staff to the Minister of ESDM for the Acceleration of Development of the Energy and Mineral Resources Sector Industry, one of the main factors contributing to the low demand for EVs in Indonesia is their high price.

“Perhaps the price is the number one factor for us. Only later will we think about charging stations. But if the price is already high, people won’t buy it,” Agus said in an interview on Wednesday.

Agus went on to explain that the price difference between gasoline-powered vehicles and electric vehicles could be as high as Rp 340 million (approximately USD 24,000).

“Just imagine, a Honda HRV and a Hyundai Kona, for example, could have a price difference of Rp 340 million,” he said.

Furthermore, concerns about the safety of electric vehicles have also been raised by the public. Agus recounted a case of an EV explosion, which is still being questioned in terms of its authenticity and timing.

“It’s still being widely discussed on social media. That one exploded over there. We don’t know when that happened or if the technology is still like that. But we don’t know. That’s the public’s dilemma,” he said.

In addition, people are worried about what will happen if an EV’s battery runs out in the middle of a trip or if the battery has reached the end of its lifespan.

Agus responded to these concerns by comparing EVs to gasoline-powered vehicles, which also need to be filled up before long journeys. He emphasized that before embarking on a journey in an EV, the battery should be fully charged, just as one would fill up a gasoline-powered vehicle.

“People might think, what if the battery runs out? What if it reaches the end of its life? These are things that behave differently from gasoline-powered vehicles. For example, if we’re going to Surabaya, which is about 890 km away, we can’t use just one tank. It will run out for sure and we need to fill it up. It’s the same with electric vehicles. We need to fill it up,” he explained.

Agus emphasized the need for both the public and the industry to be prepared for the transition to EVs. “Our infrastructure is still in its early stages, so the public’s readiness to adopt the technology and the industry’s infrastructure readiness are still in the early stages of development. These are all the stages we need to go through,” he stated.

It’s worth noting that the average cost of EVs in Indonesia is still relatively high, which contributes to their low demand. Therefore, Indonesia and other countries offer incentives for the purchase of EVs, not only as a sweetener but also to accelerate the transition to green energy and achieve zero emissions.