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Potentials and challenges of electric vehicles in the economy sector

Electric vehicles (Photo: bisnismuda.id)
Electric vehicles (Photo: bisnismuda.id)

UNAIR NEWS – Electric vehicles are taking over the global market, including in Indonesia. Prof. Dr. Sri Herianingrum, an economist from the Faculty of Economics and Business at Universitas Airlangga, underscored that the economic sector, particularly job creation and industrial expansion, is the primary focus. What are the probable challenges for electric vehicles in Indonesia?

Although the data on demand and output for electric vehicles, particularly cars, have not increased significantly, the increasing trend in electric motorbikes persists. However, the challenge lies in the fact that Indonesian society is not fully prepared to adopt new technology, notably electric automobiles.

“The great potential lies in the transition from fuel-based vehicles to electric ones, which can impact the economy as a whole. Sustainable development and environmental stability are the goals. However, in reality, the Indonesian community is not ready yet to switch to new technology, especially electric vehicles,” said Prof. Herianingrum.

She emphasized Indonesia’s position as the world’s largest nickel producer, presenting an opportunity to manufacture larger batteries, a crucial component in electric vehicles. This opens up possibilities for the development of the automotive industry and increased employment in the sector, which requires attention.

Prof. Dr. Sri Herianingrum SE MSi, Economist from the Faculty of Economics and Business of Universitas Airlangga. (Photo: By courtesy)

“However, there are issues that must be addressed. Inadequate charging infrastructure, appropriate subsidies to encourage the adoption of electric vehicles, and rules to facilitate this transition all demand significant consideration in the steady growth of electric vehicles for Indonesian society,” she stated.

In facing these challenges, serious attention is required in the slow development of electric vehicles for Indonesian society. Prof. Herianingrum stated that by addressing infrastructure issues, providing appropriate incentives, and enacting supportive regulations, Indonesia can maximize the potential of electric vehicles to support long-term economic growth while reducing the negative environmental impact of traditional transportation.

“While there are still obstacles to overcome, electric vehicles have significant potential to transform Indonesia’s economic landscape towards a more sustainable and environmentally friendly future,” she said.

Author: Rosali Elvira Nurdiansyarani

Editor: Feri Fenoria

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