Technological, Environmental, Economic, and Regulation Barriers to Electric Vehicle Adoption: Evidence from Indonesia

Abstract

This study explores the obstacles to electric vehicle (EV) adoption in Indonesia, focusing on technological, environmental, economic, and regulatory factors. Despite government initiatives, such as the Presidential Regulation 55 of 2019, intended to encourage the adoption of EVs and mitigate air pollution, the EV market share in Indonesia remains low, at 1.47%. The main challenges include inadequate charging infrastructure, limited public revenue, and financial constraints. This research highlights the need for improved government policies, incentives for producers, and increased public awareness to encourage EV adoption. Factors influencing consumer decisions include operational costs, environmental concerns, and the availability of charging stations. Key findings suggest that electric motorcycle users have a lower understanding of technology than electric car users, with particular attention to initial costs, maintenance costs, and the accessibility of charging infrastructure. This study recommends that manufacturers and policymakers consider the different preferences of electric car and motorcycle users in their EV adoption promotion strategies. The study seeks to elucidate the determinants affecting EV adoption in Indonesia and propose potential solutions to accelerate the transition to electric mobility.

Keywords

• electric vehicles
• barriers to adoption
• charging infrastructure
• government policies
• public awareness