Low Carbon Emission Vehicle Adoption and Production Barriers in Indonesia: A DEMATEL Approach

Abstract

The environmental background for reducing greenhouse gas emissions drives a shifting program to gradually replace the internal combustion engine vehicles (ICEVs) with electric vehicles (EVs). Electric vehicles are part of low-carbon emission vehicles promoted in sustainability transportation. In Indonesia, EV sales volume has risen significantly during the last three years. However, it is still far from the targeted number stated in the roadmap of EV development. Economic factors are the main barriers to EV adoption and production, as are other sustainable product problems. Therefore, the research evaluates the structure of the nine economic barriers related to users, EV manufacturers, EV charging station providers, and the government using the DEMATEL method. The result concludes that the most significant barrier is the domination of global original equipment manufacturers (OEMs), followed by EVs as the disruptive technology and products; most automotive customers are economy users, and the EV purchase prices are higher than ICEV prices. The result benefits as the feed for further decision-making analysis determined by the government for more effective affirmative policy to sustainable products.