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20 February 2025

To accelerate Indonesia’s green economy transition and achieve its 2025 Electric Vehicle (EV) adoption goals, PAGE Indonesia in collaboration with the Directorate of Environmental Affairs/Bappenas, conducted a Policy Dialogue on Electric Vehicles for Green Economy Transformation on 20 February in Jakarta.

The event convened policymakers, industry experts, and international organizations to explore strategies for accelerating EV adoption, enhancing infrastructure, and equipping the workforce with the necessary skills for a sustainable future.

During the event, Leonardo A.A. Teguh Sambodo, Deputy for food affairs, natural resources and environment at Bappenas, emphasized the critical role of EVs in reducing greenhouse gas emissions and achieving Indonesia’s Green Economy Index (GEI) targets. He reaffirmed the government’s commitment to strengthening the EV supply chain, promoting public transport electrification, and enhancing fiscal incentives and regulatory frameworks.

Global experiences from UNDP, UNIDO, and UNEP showcased the importance of stable policies, investment in battery technology, and regional cooperation. Lessons from Thailand and China emphasized the need for harmonized regulations, public-private partnerships, and incentives to support EV market growth in Indonesia. The ILO highlighted the need for upskilling programs, industry-academia collaboration, and standardized certification systems to prepare workers for new opportunities in the EV sector.

“The transition to electric vehicles is not just about reducing emissions but also about creating a more sustainable and competitive economy. Our analysis highlights that while Indonesia has made significant strides in EV adoption, key challenges remain, particularly in infrastructure, workforce readiness, and supply chain localization. Addressing these barriers through targeted incentives, regulatory improvements, and enhanced collaboration between government, industry, and academia will be essential in achieving Indonesia’s Green Economy Index (GEI) targets. By strengthening domestic EV production and integrating circular economy principles, we can ensure that this transition supports long-term economic growth and job creation.”, indicated Faisal, Director of CORE Indonesia and Expert Team of UNEP and UNDP.

Indonesia aims to establish 3,202 charging stations by 2024, yet barriers such as high battery costs and limited charging facilities persist. To address these, the government is implementing a Single Gateway System to monitor charging stations, offering incentives for operators and home charging systems, and promoting local battery production through circular economy practices.

Looking ahead, Indonesia aims to expand EV incentives, enhance workforce transition programs, and strengthen policy collaboration to achieve its 2035 EV adoption goals. With continued commitment from stakeholders, the country is poised to lead ASEAN’s shift toward low-carbon transportation and a greener economy.

Indonesia joined PAGE in 2018, with BAPPENAS serving as the government’s focal point for this initiative. UNDP is the leading coordinating agency for the PAGE programme.

source: PAGE Indonesia

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