Investigating policies on increasing the adoption of electric vehicles in Indonesia

The transition to electric mobility has been encouraged to curb carbon dioxide (CO₂) emissions through government policies worldwide. Indonesia is committed to reducing CO₂ emissions, one of which is to increase the adoption of electric vehicles (EVs) despite considerable challenges in infrastructure, technology, cost, and user acceptance. Therefore, since 2019, the government has implemented several fiscal and non-fiscal policies to encourage consumers to purchase EVs. However, the extent to which these policies can effectively increase the long-term adoption of EVs remains a subject of further investigation. Thus, this study aims to investigate the effectiveness of policies for increasing EV adoption in Indonesia by developing a system dynamics model of EV adoption combined with the policy analysis framework. The findings demonstrate that the government should focus on reducing EV taxes that are incurred on consumers. Moreover, additional policies should address the development of EV technology to improve driving range and manufacturing costs, as the results indicate that these factors exert a more significant impact on increasing EV attractiveness. However, the role of financial incentives is more prominent when EV technology advancement is lagging.