This paper – The Role of Electric Vehicles in Decarbonizing Indonesia’s Road Transport Sector – is produced as a part of work of Climate Transparency, an international partnership of IESR and 13 other research organizations and NGOs comparing G20 climate action – www.climate-transparency.org. This report has two objectives. Firstly, to evaluate existing policy and regulatory framework on the development of electric vehicles in Indonesia; secondly, to find the impact of electric vehicles penetration in GHGs emissions reduction to increase Indonesia’s climate ambition to meet the Paris Agreement’s goals.
Few countries have shown quite a remarkable growth in the electric vehicle market. In 2019, the Presidential Regulation that aims to accelerate electric vehicle deployment has been stipulated. However, this regulation alone is not sufficient. Without right and consistent policies, transparent planning and target, inter-sectoral coordination and incentives, it will be hard for Indonesia electric vehicle market to take-off.
Against this background, we build a model – focuses only on private passenger vehicles – to project the electric vehicle market in Indonesia. Furthermore, based on the projection, we analyze the impact of electrification of transport on Indonesia’s GHG emission reduction and the potential of electric vehicles to be included in the NDC.