The transportation sector is a major contributor to greenhouse gas (GHG) emissions, accounting for nearly a quarter of total global emissions from fuel combustion (IEA, 2020). Electric vehicles are emerging as a promising solution to replace fossil fuel cars. With higher efficiency, electric vehicles require much less energy, resulting in lower emissions.

Countries such as China, Japan, South Korea and the United States have set targets to increase the adoption of electric vehicles. However, Norway is leading the way with its ambition, planning to achieve 100% private electric vehicle sales by 2025.

This government support and ambitious targets have had a significant impact on increasing electric vehicle sales globally. From 2014 to 2019, electric car sales jumped more than six-fold, reaching around 2.1 million units. Cumulatively, in 2019 there were around 7.2 million electric cars, with 90% of the total in China, Europe and the United States (IEA, 2020).

What makes Norway so Successful?

The answer lies in a combination of supportive government policies. In Norway, import duties and registration taxes for vehicles are high, making them much more expensive than in other countries. However, the Norwegian government waives these import duties and registration taxes for electric vehicles, making the price of electric vehicles very low compared to conventional vehicles, which is very attractive to potential vehicle buyers. . In addition, the Norwegian government also provides various other incentives that further tempt people to switch to electric vehicles such as free toll fees, free parking, and access to bus lanes.

This combination of benefits further strengthens the financial decision for potential buyers. It is important to note that Norway is also building an electric vehicle charging infrastructure with a fast charging system. This infrastructure is essential for users who rely on electric vehicles as their only transportation option, especially when they travel long distances.

By the end of 2023, there will be more than 22,000 charging stations for electric vehicles in Norway, including around 3,500 fast charging stations. The Norwegian government also aims to have an additional 1,600 fast charging stations operating across the country by 2025.

With more and more electric vehicles in circulation, the demand for fast charging stations continues to increase. This creates opportunities for companies to invest in and develop charging station networks. Fast charging stations can generate revenue, both from electric vehicle users and the tariff charged to charging service providers.

Lessons for Indonesia

As a country that is still in the development stage of the electric vehicle market and industry, Indonesia can learn a lot from Norway's experience. If you are interested in switching to electric vehicles in Indonesia, here are some incentives that you can enjoy:

  • PPNBM exemption (PP No.73/2019)
  • 100% free power-up facility for electric cars and 75% for electric motorcycles from PT PLN .
  • BBNKB exemption in Jakarta (Pergub No.3/2020)
  • Odd-even zone exemption in Jakarta (Pergub No.88/2020)
  • BBNKB reduction in West Java up to 10% for four wheels and 2.5% for two wheels (Kepmendagri No.973-689/2019)
  • BBNKB reduction in Bali up to 10% (Bali Regional Regulation No.9/2019)

With these benefits, are you ready to become an electric vehicle user in Indonesia?