The Indonesian Government has a development plan to promote the use of electric vehicles (EVs) in the country. The state-owned electricity enterprise, PLN, has developed a roadmap for EV adoption.
As per current regulations, all electricity supply for EV charging stations in Indonesia will be provided by PLN. The roadmap projects a significant growth of EVs in the country. According to PLN’s projection, the number of electric four-wheelers is expected to increase from 22.5 thousand in 2022 to approximately 2 million by 2030, while the number of two-wheelers will increase from 68.5 thousand in 2022 to around 13.5 million by 2030. However, this growth will require adequate charging infrastructure. The roadmap estimates a need for around 48 thousand charging infrastructure for four-wheelers and approximately 196 thousand for two-wheelers by 2030. Nonetheless, the actual sales of EVs to date have been lower than expected, mainly due to the lack of charging infrastructure and the high cost of EV ownership.
The project titled “Enhancing Readiness for the Transition to Electric Vehicles in Indonesia” (ENTREV) is a four-year initiative funded by the GEF Trust Fund. The project commenced in February 2023, and it is expected to be completed by early 2027. The total budget allocated for this project is USD $1,816,500. The Ministry of Energy and Mineral Resources (MEMR) represents the implementing partners from the Government of Indonesia.
The objective of the project is to decrease greenhouse gas emissions resulting from urban transportation, enhance air quality, reduce petroleum product consumption, promote local manufacturing facilities, and generate new job opportunities. The success of the project can be assessed by the rise in the usage of battery-electric vehicles in urban regions.
The project will implement specific interventions throughout the program. They are:
- Develop the market for the production of EV components
- Development of EV charging and battery swapping stations
- Promotion of purchase and use of battery electric vehicles
- Capacity, knowledge, and information development
The project is focusing on deploying electric vehicles infrastructure in three pilot regions - Jakarta, West Java, and Bali. Each region has a specific target for the number of EV infrastructure deployments. In Jakarta, the project aims to implement at least 12 battery swapping stations for two-wheelers and one EV charging station for four-wheelers. In West Java, there will be at least five battery swapping stations and seven charging stations. In Bali, 12 battery swapping stations and one EV charging station will be implemented. Overall, the project plans to install around 29 battery swapping stations and 9 EV charging stations across these three regions.
The project has a result-oriented approach, and it is expected to achieve three primary outcomes:
BATTERY PRODUCTION
Battery electric vehicle production and the deployment of charging infrastructure would be strengthened in a way that efficiently responds to the national market.
MARKETS & POLICIES DEVELOPED
The local policies and markets would be effectively developed by strengthening the market for battery electric vehicles and charging infrastructure in selected regions in Indonesia.
DEVELOP TECHNICAL SKILLS
The necessary capacity and technical skills would be developed amongst the public sector officials, vehicle manufacturers, civil society (potential EV buyers), and other associated value chains.
