Identification of electric vehicle adoption and production factors based on an ecosystem perspective in Indonesia

Abstract

The program to replace fossil fuels powered vehicles with electric vehicles (EVs) is part of the global endeavor to reduce greenhouse gas emissions. In Indonesia, EV adoption is still low. The EV market share is currently 1.47 percent of the 10 percent goal for 2022. Due to the vulnerability of local industries, including electric vehicle (EV) startup manufacturers, foreign-origin equipment manufacturers (OEMs) continue to dominate the Indonesian automotive industry. Although the government encourages automakers to produce and sell battery electric vehicles (BEVs), the incumbent prefers to introduce hybrid electric vehicles (HEVs) and continues to prioritize internal combustion engine vehicles (ICEVs). Numerous studies have investigated the factors of EV adoption based on user perspective. However, few studies examine the factors influencing automakers to produce EVs, especially in developing nations like Indonesia, where foreign OEMs dominate automotive manufacturers. This study analyzes the drivers and barriers to adopting and producing electric vehicles from an ecosystem perspective, including users, the EV industry, charging infrastructure providers, and the government using the Delphi method. According to the findings, in addition to the user’s ability and price barriers in the most demanded 7-seater EVs, the critical adoption and production factors are the effect of the OEM’s global strategy and the priority of government policies to promote EVs while maintaining the sustainability of the automotive industry.

Keywords:

• Electric vehicle
• adoption
• production
• ecosystem
• Delphi method
• Indonesia

REVIEWING EDITOR:

• Len Tiu Wright, De Montfort University Faculty of Business and Law, United Kingdom of Great Britain and Northern Ireland

SUBJECTS:

• Industry & Industrial Studies
• Industrial Engineering & Manufacturing
• Transport & Vehicle Engineering
• Clean Tech
• Sustainable Development
• Business, Management and Accounting
• Environmental Economics

Authors’ contributions

The conception and design (TWS, UC); analysis and interpretation of the data (TWS, UC, BW); the drafting of the paper (TWS, AP); revising it critically for intellectual content (TWS, UC, BW, AP); the final approval of the version to be published (UC, BW, AP); and all authors agree to be accountable for all aspects of the work.

Disclosure statement

The authors declare no conflict of interest.

Data availability statement

The data supporting the findings of this study are available within the article.

Additional information

Funding

This work was supported by the National Research and Innovation Agency, Indonesia, under scholarship number SK DBR No 61/II.2.3/KP/2023.

Notes on contributors

Triyono Widi Sasongko

Triyono Widi Sasongko is a doctoral student at the Department of Industrial and Systems Engineering, Institut Teknologi Sepuluh Nopember (IT S) Surabaya, Indonesia. He is a researcher at the Research Center for Sustainable Production System and Life Cycle Assessment, National Research and Innovation Agency, South Tangerang, Indonesia. His research interests are sustainability transportation system, electric vehicle ecosystem, and industrial policy.

Udisubakti Ciptomulyono

Udisubakti Ciptomulyono is a Professor at the Department of Industrial and Systems Engineering, Institut Teknologi Sepuluh Nopember (IT S), Surabaya, Indonesia. His research interests are multiple criteria decision-making, system modeling and analysis, management of technology, sustainable manufacturing, and environmental management.

Budisantoso Wirjodirdjo

Budisantoso Wirjodirdjo is a Professor and senior lecturer at the Department of Industrial and Systems Engineering, Institut Teknologi Sepuluh Nopember (IT S), Surabaya, Indonesia. His research interests are quantitative modeling and analysis, system dynamics methodology, operation research, and industrial systems policy analysis.

Andhika Prastawa

Andhika Prastawa is a researcher at the Research Center for Energy Conversion and Conservation, National Research and Innovation Agency, South Tangerang, Indonesia. His area of interest and expertise is in technology and policies for renewable energy systems, power systems, and energy conservation.