Accelerating EV Adoption in Indonesia: Policy and Industry Perspectives
Indonesia is moving toward a greener economy, with electric vehicles (EVs) playing a key role in reducing emissions, creating jobs, and strengthening energy security. To support this transition, The Ministry of National Development Planning/National Development Planning Agency (Bappenas) held the EV Policy Dialogue for Green Economy Transformation on 20 February 2025 at The Hermitage, in collaboration with the United Nations Development Programme (UNDP), the United Nations Industrial Development Organization (UNIDO), and the United Nations Institute for Training and Research (UNITAR), under the Partnership for Action on Green Economy (PAGE) Indonesia.
The discussion drew insights from three interrelated studies conducted as part of PAGE Indonesia’s joint intervention approach to support Bappenas in developing EV sector policies under the Indonesia Green Economy Framework (IGEF). These studies, carried out by UNDP (through CORE Indonesia), the International Labour Organization (ILO), and UNIDO (through Life Cycle Indonesia), each address a different but complementary aspect of Indonesia’s EV adoption.
The dialogue was opened by the Deputy for Food Affairs, Natural Resources, and Environment at Bappenas, Leonardo A.A. Teguh Sambodo, who emphasized that EVs are a crucial part of Indonesia’s strategy to reduce greenhouse gas emissions and strengthen its economy. He highlighted the importance of developing local supply chains, expanding EV infrastructure, and preparing a skilled workforce to ensure a smooth transition. The event featured two panel discussions.
Dr. Jessica Hanafi from Life Cycle Indonesia, representing UNIDO, highlighted challenges like charging infrastructure, battery supply chains, and workforce readiness.
The first session focused on Indonesia’s EV policies, technology readiness, and economic impact and the second session expanded on global best practices.
Representing UNIDO, Dr. Jessica Hanafi, Principal and Director of Life Cycle Indonesia, discussed the main challenges in EV adoption, including limited charging stations, battery supply chains, and end-of-life battery management. She stressed that as global EV adoption accelerates, Indonesia must anticipate shifting market demands and evolving regulations. Investing in local supply chains, battery recycling, and second-life applications will help reduce environmental impact and strengthen Indonesia’s competitiveness.
The second session expanded on global best practices, with insights from experts representing the Ministry of Energy and Mineral Resources, CORE Indonesia (UNDP), ILO, UNITAR, and UNEP. This session highlights the need for a skilled EV workforce, stronger investment frameworks, and more consistent policies in Indonesia. Limited expertise in battery technology and maintenance calls for targeted upskilling programs, while investment growth remains dependent on clearer incentives and long-term financial support. Regulatory uncertainty continues to be a concern, reinforcing the importance of stable policies and cross-sector collaboration. Insights from other countries emphasized that well-aligned regulations, public-private partnerships, and infrastructure investment are key to accelerating Indonesia’s EV transition.
The dialogue concluded with a commitment from the government to expand financial incentives, improve workforce training, and strengthen policy coordination to achieve Indonesia’s 2035 EV adoption targets.
By taking part in this discussion, Life Cycle Indonesia continues to support data-driven policymaking, ensuring that Indonesia’s EV transition is both economically beneficial and environmentally sustainable.
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