Driving the Transport Electrification: Exploring Stakeholders’ Perceptions and Actions in the Indonesian Automotive Industry Transition to Electric Mobility

Muhammad Habiburrahman, Rahmat Nurcahyo (), Azanizawati Ma’aram and Kaoru Natsuda
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Muhammad Habiburrahman: Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Depok 16424, Indonesia
Rahmat Nurcahyo: Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Depok 16424, Indonesia
Azanizawati Ma’aram: Department of Materials, Manufacturing and Industrial Engineering, Faculty of Mechanical Engineering, Universiti Teknologi Malaysia, Skudai 81310, Johor, Malaysia
Kaoru Natsuda: Graduate School of Asia Pacific Studies, Ritsumeikan Asia Pacific University, Beppu-shi, Oita 874-8577, Japan

Sustainability, 2024, vol. 16, issue 14, 1-20

Abstract: The rise of all types of electric vehicles (xEVs) is reshaping the global automotive sector, marking a new era of electric mobility (eMobility). While existing research predominantly explores the transition towards eMobility from the perspectives of automakers, governments, and users, a notable gap exists regarding the role of internal combustion engine (ICE) component manufacturers. This research aims to examine the transformative journey of the Indonesian automotive industry, specifically focusing on the strategic responses of Indonesian ICE component manufacturers towards eMobility. This study employs a multi-level perspective (MLP) approach through 12 semi-structured interviews with stakeholders representing government bodies, associations, automakers, academia, startups, and ICE component manufacturers. This research sheds light on stakeholders’ perceptions and actions in the transition to eMobility. The findings reveal various factors influencing transition, including current low xEV demand, companies’ perceptions of xEVs, huge investments, changes in the supply chain, technological capabilities, and government policies. This research provides an overview of the strategies for ICE component manufacturers, along with their risks and advantages. This research also recommends two policies for the Indonesian government: a gradual transition and more support for local xEV and component manufacturing.

Keywords: component manufacturer; low emission vehicle; sustainability; transformation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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