Socioeconomic Impacts and Consumer Preferences Analysis of Electrified Vehicle in Indonesia

Chaikal Nuryakin, Riyanto, Setya Agung Riyadi, Ashintya Damayati, Andhika Putra Pratama, Natanael Waraney Gerald Massie

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

1 Citation (Scopus)

Abstract

Electrified vehicles (EV) entry to the Indonesian automotive market at the moment is relatively new, with market penetration being modest at best. This study discusses two major socioeconomic aspects of EVs in their early ventures in the country. First, we examine the feasibility and the impact of accelerating the development of electric cars in Indonesia in economic, environmental, and fiscal aspects. Second, we use primary data analysis by conducting users and prospective car users in the Greater Jakarta area to elicit the consumers' preferences for electric cars. In this analysis, we specifically estimate the necessary price incentives for each of the EV types, i.e., Hybrid Electric Vehicles (HEV), Plug-in Electric Vehicles (PHEV), and Battery Electric Vehicle (BEV), to gain certain market exposure in the country. We also utilize simulation method in estimating the impacts of various scenarios of policies in accelerating the use of EV vehicles on the automotive industry market and the automotive component industry, as well as government (fiscal), environmental (CO2 emission reduction) and macroeconomic revenues. Our findings suggest that considerable amount of price and non-price incentives is needed to encourage Indonesian consumers to consider EVs compared to ICE. On the environmental and fiscal perspective, we find PHEV serve as the better vehicle to be introduced into the country's automotive landscape, with a prudent mixture of the three aforementioned EV being also a viable option.

Original languageEnglish
Title of host publicationICEVT 2019 - Proceeding
Subtitle of host publication6th International Conference on Electric Vehicular Technology 2019
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages80-87
Number of pages8
ISBN (Electronic)9781728129174
DOIs
Publication statusPublished - Nov 2019
Event6th International Conference on Electric Vehicular Technology, ICEVT 2019 - Bali, Indonesia
Duration: 18 Nov 201921 Nov 2019

Publication series

NameICEVT 2019 - Proceeding: 6th International Conference on Electric Vehicular Technology 2019

Conference

Conference6th International Conference on Electric Vehicular Technology, ICEVT 2019
CountryIndonesia
CityBali
Period18/11/1921/11/19

Keywords

  • electrified vehicle
  • incentives
  • Indonesia
  • socioeconomic impacts
  • total cost of ownership

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