Indonesia accelerates replacement of EV for state-owned enterprises


The Indonesian government is expanding the adoption of electric vehicles. Starting January 3, 2024, all officials from the first and second tiers of State-owned Enterprises will exclusively use electric vehicles as their official vehicles. The initiative aims to reduce reliance on fossil fuels, expediting the nation’s carbon reduction efforts and energy transition.

Indonesian Minister of State-Owned Enterpirse, Erick Tohir, announced this development during the inauguration of the Ministry of State-Owned Enterprises Media Center. He expressed gratitude to all of his team, stating, “I am very grateful to all state-owned units. As a result, gifts for the first and second-level officials are ready, and the new electric vehicles have been distributed.”

Indonesian Minister of State-Owned Enterpirse, Erick Tohir. (Photo: BUMN)

Erick believes that the use of electric vehicles offers numerous advantages, including the maintenance of air quality, support for Indonesia’s electric vehicle (EV) industry, and contribution to increase energy efficiency. He further stated that, based on the State Budget (APBN) standard input costs (SBM), adopting electric vehicles results in a 60% cost saving compared to traditional fuel vehicles. Therefore, he hopes that in the future, the adoption of electric vehicles will not be limited to officials from first and second tier, but also to become the operational vehicles for all of the state-owned enterprises.

In order to encourage the use of these electric vehicles, the Indonesian State Electricity Company (Perusahaan Listrik Negara, PLN) has taken steps not only to establish Public Electric Vehicle Fast Charging Stations (SPKLU) around the offices of state-owned enterprises, but also to provide home charging services for the officials.

On the other hand, to assist the nation’s manufacturing industry in addressing future challenges, the Indonesian Ministry of Industry (Kemenperin) led by Minister Agus Gumiwang Kartasasmita, has announced plans to revise the industrial laws. The revisions will particularly focus on decarbonization issues, with the aim of achieving a net-zero emission target for the manufacturing sector by 2050, 10 years ahead of the national goals set by the government. The minister stated, “These aspects will be explicitly mentioned in the revised documents to expedite the realization of carbon neutrality.”

Agus also revealed that the direction of the revisions includes digital transformation because he believes artificial intelligence (AI) will become a cornerstone of the future industry. He emphasized,” We can never determine whether in the next 20 or 30 years, artificial intelligence will be employed in the production processes of these factories. We don’t know. If we are not prepared for this trend, we would be very unwise, as the world is moving towards this direction.”

Related Topics
Indonesia aims to export green hydrogen by 2030
Indonesia vice presidential debate: CCS in the spotlight

More from Renewable Energy Certificate

Download request

Please fill out the form to download samples.

Job title
Company email
By using this site, you agree with our use of cookies.