Comparative Economic Study of Electric Cars in Indonesia

Abstract

As a step to reduce C02 emissions, the Indonesian Government has issued various regulations, one of the aims of which is to encourage the use of electric cars as environmentally friendly vehicles. According to Gaikindo (2022), the number of electric cars sold in 2022 of only 15,437 units. The figure has increased by 383.46% compared to 2021 however, the number of electric car users in Indonesia is still quite low when compared to the Indonesian Government's target of 2 million units for switching from conventional/Internal Combustion Engine (ICE) cars to electric-based cars by 2030. Economic considerations are a significant barrier to efforts to electrify conventional cars. This research aims to provide an economic analysis of electric cars and conventional cars in Indonesia through Total Cost of Ownership (TCO) and Equipment Uniform Annualized Cost (EUAC) calculations. According to the TCO calculation, the best ownership time for an electric car at a distance of 10000-25000 KM is between 7 to 9 years. The deeper investigation through EUAC calculation showed that the economic lifetime of electric cars at a distance of 10000-25000 KM is 9 years compared with other ICE cars in the same segment.