Indonesia Accelerates Electric Vehicle Adoption Through Energy Transition

Government Confidence in Renewable Energy Growth

The Indonesian government remains optimistic about the development of electric vehicles (EVs) in the country, highlighting significant progress in the energy transition process. Harris, Head of the Electricity, New and Renewable Energy (EBTKE) Survey and Testing Center, emphasized that the current development of electric cars and motorcycles in Indonesia shows great potential.

Key Drivers of Energy Transition

Harris explained that energy transition involves not just changing energy sources from fossil fuels to renewable energy, but also shifting demand towards more environmentally friendly energy consumption. This transition is being implemented through various measures, including the adoption of electric vehicles and the use of electricity-based household appliances.

Current Progress and Future Plans

As of now, Indonesia's renewable energy mix stands at 15%. The government is working in parallel on both the supply and demand sides to increase this percentage. Harris stated, "We are still using around 15% renewable energy today. But we are now doing it in parallel, both from the supply side and the demand side." This dual approach aims to increase electricity usage while making it greener.

Regulatory Support for Electric Vehicle Adoption

The government has taken significant regulatory steps to support this transition. Government Regulation (PP) No. 40/2025 on National Energy Policy (KEN) has been issued to regulate national energy policy until 2060 and accelerate the implementation of electric vehicles domestically. Harris noted that this regulation aligns with efforts to further accelerate electric vehicle adoption in Indonesia.

Comprehensive Approach to Energy Transition

The government's comprehensive strategy includes both supply-side and demand-side interventions. On the supply side, the focus is on increasing the share of renewable energy in the energy mix. On the demand side, the government is promoting the adoption of electric vehicles and other electricity-based technologies to reduce dependence on fossil fuels.

Conclusion

Indonesia's energy transition strategy demonstrates a forward-thinking approach to sustainable development. By combining regulatory support with infrastructure development and demand-side incentives, the government aims to create a robust ecosystem for electric vehicles and renewable energy. This comprehensive approach positions Indonesia as a potential leader in the regional energy transition landscape.