Conceptual Model for Understanding the Policy Challenges of Electric Vehicle Adoption in Indonesia

Yolanda Natalia, Irvanu Rahman, Akhmad Hidayatno

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Indonesian electric vehicle (EV) market has undergone insignificant development as the EV adoption level remains low. Acceleration of EV adoption through better policies and regulations is critical to help to achieve the Indonesian government's commitment to reduce the greenhouse gases (GHG) emissions by 29% in 2030. Understanding the EV market and its structural barriers that dampen the policies bring promising outcomes for delivering the intended results of emission reduction. Moreover, the multi-actor perspectives and interests within the EV market also highlight a dynamic and complex nature, characterizing the system observed. By taking a systems view, this paper aims to analyze the market structure and challenges for government policies to promote EV adoption and explore how these strategies would affect Indonesia's sustainable development using a conceptual approach of system dynamics modeling. The model forms six reinforcing and three balancing loops categorized into five essential aspects in EV adoption: vehicle repurchasing, technology shifting, infrastructure development, and commercial-induced buying for both first-time and repurchased consumers. This result shows that pricing, infrastructure development, and perceived social utility are the most determining factors for increasing willingness to adopt EV. Innovation and education aspects also emphasize a specific role in catalyzing a higher adoption rate.

Original languageEnglish
Title of host publicationICIBE 2020 - 2020 6th International Conference on Industrial and Business Engineering
PublisherAssociation for Computing Machinery
Pages113-117
Number of pages5
ISBN (Electronic)9781450387880
DOIs
Publication statusPublished - 27 Sep 2020
Event6th International Conference on Industrial and Business Engineering, ICIBE 2020 - Macau, China
Duration: 27 Sep 202029 Sep 2020

Publication series

NameACM International Conference Proceeding Series

Conference

Conference6th International Conference on Industrial and Business Engineering, ICIBE 2020
CountryChina
CityMacau
Period27/09/2029/09/20

Keywords

  • Electric Vehicle
  • Policy Analysis
  • Sustainability
  • System Dynamics
  • Technology Adoption

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