Jakarta, September 6, 2024 – The transition from internal combustion engine (ICE) vehicles to electric vehicles (EVs) is an essential step in efforts to reduce greenhouse gas emissions and reduce dependence on fossil fuels. Although this transition does not happen instantly, changes in behavior, thinking, and technology must be made gradually. This was revealed by Ilham F Surya, Environmental Policy Analyst, Institute for Essential Services Reform (IESR), at the open stage of the Indonesia International Sustainability Forum (IISF) 2024 on Friday (6/9/2024).
“Infrastructure and policies that support electric vehicles, as well as environmentally friendly and affordable technology, are needed. In addition, qualified human resources in the electric vehicle industry are the main key to driving sustainable growth,” said Ilham.
Currently, sales of electric vehicles continue to increase. Citing Gaikindo data, national electric vehicle sales reached 17,826 units in January-July 2024, up 157.30% compared to the previous year. Ilham mentioned the ratio between electric vehicles and public charging stations is still not ideal despite the increase. Ideally, there are ten charging stations for every one electric vehicle. Still, currently, the ratio only reaches 1:17. According to Ilham, PT Perusahaan Listrik Negara (PLN) and several vehicle manufacturers, such as Wuling, have provided incentives for home charging installations as a temporary solution while waiting for public charging infrastructure to be improved.
“In addition, it is important to maintain the government’s commitment to the development of electric vehicles, even though there will be a change of government. This sustainability policy is essential so incentives and policies that encourage the existing electric vehicle ecosystem can continue and develop,” said Ilham.
On the other hand, the growth of electric vehicles may impact the electricity system. In addition to potentially reducing greenhouse gas emissions, adopting electric vehicles will bring additional electricity demand. IESR’s Indonesia Energy Transition Outlook (2023) shows that under an accelerated scenario, electricity demand for land transportation will reach 136 TWh in 2030 and 499 TWh in 2050, about 15 times greater than the RUEN projection. Under these conditions, electric vehicles and their electricity demand need to be seen as a way to increase the flexibility of the electricity system by synchronizing the charging of electric vehicles when the load is low.
