IEEE Electrification Magazine - June 2020 - 51

Business Model for EVs in Indonesia: D2DM

For Further Reading

Research into the development of EVs in Indonesia has
become a well-known program to the public. Indonesian
people, as users, are well informed about EVs. The market
mapping is clear. First, the market exists, and it is driven
by the lifestyle of Indonesians who are highly attached to
technologies and environmental issues. Second, the market is driven by economic factors; in this case, cheaper
vehicle operation costs. Third, and more importantly, the
market exists because of fuel supply problems. This considerably huge market has a different geographical distribution. The first type of consumer lives in big cities and
economic centers. The second type resides in smaller cities or rural areas with less economic welfare. The third
type inhabits remote areas or islands.
This could be a challenge in the future regarding the
business model of the EV industry. Technology facilities,
industries, and specialized technicians are available in big
cities and industrial areas. On the other hand, cheaper
manpower, large areas for production lines, and the
potential market are available in smaller cities. One optimal solution to this problem is the D2DM concept. Distributed means that local companies are scattered inside
cities with a high demand for EVs and low labor costs.
Direct indicates that consumers customize vehicles as
they see fit. An online system will be developed to assist
customers with design customization. "Digital" shows that
digital platforms ease production coordination that
involves customers, engineers, suppliers, local manufacturers, labor, and all other stakeholders to achieve an optimal result.

"Annual energy outlook 2020," U.S. Department of Energy,
Washington, D.C., 2020. [Online]. Available: https://www.eia
.gov/outlooks/aeo/
"World energy scenarios, 2019: Exploring innovation pathways to 2040," World Energy Council, London, 2019. [Online].
Available: https://www.worldenergy.org/transition-toolkit/
world-energy-scenarios
A. P. Kamidjo, "Indonesia (MOLINA): Status and program of
research and development on national electric vehicle prototype 2014-2015," in Proc. 3rd AAI Summit, Dec. 2014, pp. 1-30.
[Online]. Available: http://www.thaiauto.or.th/2012/AAI
-Summit/Program2-1.asp
Ristekdikti, "PRIORITAS RISET NASIONAL 2020-2024 Kebijakan Untuk Mendorong Pengembangan dan Pemanfaatan
Produksi Dalam Negeri," Focus Group Discussion (FGD) on
"Pengembangan dan Pemanfaatan Peralatan Produksi
Dalam Negeri (TKDN) Untuk Menunjang Keselamatan Penerbangan," Surabaya, Indonesia, Sept. 25, 2019. [Online].
Available: https://balitbanghub.dephub.go.id/index.php/
file/138
Otosia, "Dahlan bantah curi teknologi tucuxi," 2013.
[Online]. Available: https://www.otosia.com/berita/dahlan
-bantah-curi-teknologi-tucuxi.html
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2012. [Online]. Available: https://oto.detik.com/ototest
-mobil/d-2064235/wah-kerennya-mobil-listrik-nasional-evina
G. Prayogi, "Mobil listrik keren karya anak bangsa, ini daftarnya," Liputan 6, Sept. 17, 2015. [Online]. Available: https://
www.liputan6.com/otomotif/read/2319725/mobil-listrik
-keren-karya-anak-bangsa-ini-daftarnya
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mobil-listrik-itb-bisa-sedan-dan-angkut-barang
A. Ganesha and S. Yuniarni, "University of Indonesia
designs, launches electric car and bus," Jakarta Globe, July 19,
2016. [Online]. Available: https://jakartaglobe.id/news/
university-indonesia-designs-launches-electric-car-bus/

Government Commitment Is Needed
As of 2020, research and development of EVs in Indonesia
has run smoothly. However, now comes a time where failure seems to have a bigger chance of happening. The popularity of EVs for potential consumers is at a good level.
The design document has already been drafted. Prototypes are made. Road tests were done. Necessary technologies have been identified. Perfecting the process is an
ongoing initiative. The main challenges are industrialization and mass production. In these areas, the government
is expected to encourage investors and the industry to
start commercialization.
The Indonesian government started its support for EV
usage by signing PerPres No. 55/2019, "Acceleration of Battery-Based EV Program for Road Transportation." However,
much more is needed. The government's promotion of
EVs for its official fleet will increase the vehicles' popularity and integrate them with people's lifestyles. The government also must involve small and medium industries as
well as coordinating them to work more efficiently and
effectively. Once this positive scenario is implemented, the
effects and results of research, development, and EV usage
will significantly improve the public economy and create a
better environment.

Biographies
Dimas Anton Asfani (anton@ee.its.ac.id) is with the
Department of Electrical Engineering, Institut Teknologi
Sepuluh Nopember, Surabaya, Indonesia.
I Made Yulistya Negara (yulistya@ee.its.ac.id) is with
the Department of Electrical Engineering, Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia.
Yoga Uta Nugraha (uta.utu@gmail.com) is with Braja
Elektrik Motor, Surabaya, Indonesia.
M. Nur Yuniarto (muhammad.nur3006@gmail.com) is
with the Department of Mechanical Engineering, Institut
Teknologi Sepuluh Nopember, Surabaya, Indonesia.
Alief Wikarta (aliefwikarta@gmail.com) is with the
Department of Mechanical Engineering, Institut Teknologi
Sepuluh Nopember, Surabaya, Indonesia.
Indra Sidharta (indra.sidharta@gmail.com) is with the
Department of Mechanical Engineering, Institut Teknologi
Sepuluh Nopember, Surabaya, Indonesia.
Agus Mukhlisin (agus.mukhlisin09@yahoo.com) is
with the Department of Mechanical Engineering, Institut
Teknologi Sepuluh Nopember, Surabaya, Indonesia.

IEEE Elec trific ation Magazine / J UNE 2 0 2 0

https://www.eia.gov/outlooks/aeo/ https://www.eia.gov/outlooks/aeo/ https://www.worldenergy.org/transition-toolkit/world-energy-scenarios https://www.worldenergy.org/transition-toolkit/world-energy-scenarios http://www.thaiauto.or.th/2012/AAI-Summit/Program2-1.asp http://www.thaiauto.or.th/2012/AAI-Summit/Program2-1.asp https://balitbanghub.dephub.go.id/index.php/file/138 https://balitbanghub.dephub.go.id/index.php/file/138 https://www.otosia.com/berita/dahlan-bantah-curi-teknologi-tucuxi.html https://www.otosia.com/berita/dahlan-bantah-curi-teknologi-tucuxi.html https://oto.detik.com/ototest-mobil/d-2064235/wah-kerennya-mobil-listrik-nasional-evina https://oto.detik.com/ototest-mobil/d-2064235/wah-kerennya-mobil-listrik-nasional-evina https://www.liputan6.com/otomotif/read/2319725/mobil-listrik-keren-karya-anak-bangsa-ini-daftarnya https://www.liputan6.com/otomotif/read/2319725/mobil-listrik-keren-karya-anak-bangsa-ini-daftarnya https://www.liputan6.com/otomotif/read/2319725/mobil-listrik-keren-karya-anak-bangsa-ini-daftarnya https://www.gooto.com/read/423959/mobil-listrik-itb-bisa-sedan-dan-angkut-barang https://www.gooto.com/read/423959/mobil-listrik-itb-bisa-sedan-dan-angkut-barang https://jakartaglobe.id/news/university-indonesia-designs-launches-electric-car-bus/ https://jakartaglobe.id/news/university-indonesia-designs-launches-electric-car-bus/

IEEE Electrification Magazine - June 2020

Table of Contents for the Digital Edition of IEEE Electrification Magazine - June 2020