DEVELOPMENT OF REGULATION AND STRATEGY RECOMMENDATION TO STIMULATE ELECTRIC VEHICLE ADOPTION IN INDONESIA BASED ON CONSUMER PREFERENCE WITH CHOICE BASED CONJOINT HIERARCHICAL BAYES APPROACH

• Main Author: IKRAR ATHALLA PUTRA (NIM : 14413011), MUCHAMMAD
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/23148
• Institution: Institut Teknologi Bandung

The transportation sector is the largest consumer of non-renewable energy and a large source of greenhouse gas (GHG) emissions in Indonesia. The wider adoption of electric vehicle (EV) technology is discussed to play a major role in the transition to a decarbonization transportation system as means to conserve and diversify energy in the transportation sector. Electric cars have several advantages over conventional cars in terms of energy efficiency, environmentally friendly, machine performance, and dependency on fossil energy. Although the policy of electric car development can be a major step towards a cleaner transportation system in Indonesia, however consumer acceptance is an unknown issue for widespread adoption of electric vehicle. Therefore, to promote the adoption of electric cars in Indonesia, it is important for governments and electric vehicle industry players to understand how consumers perceive electric cars and what kind of electric cars that the consumer wants to adopt. <br /> <br /> <br /> This study incorporates the Choice Based Conjoint (CBC) methodology with the Hierarchical Bayes estimation method to analyze Indonesian consumers' preferences for electric vehicle products. Conjoint simulations were then used to predict the potential market share of electric vehicle types in Indonesia and cluster analysis was used to segment the types of electric vehicle consumers. The results of the potential market analysis based on consumer preferences carried out in this study is intended as a basis for development of policy recommendations and strategies that can be applied by the government of the Republic of Indonesia and industry players in order to stimulate the adoption of electric car technology in Indonesia. <br /> <br /> <br /> The purchase price, carbon dioxide emissions, refill or recharge process, mileage, and operational costs are found as the five most important attributes that affect consumer intentions in choosing electric vehicle products. PHEV, HEV, and BEV are found to have a good level of acceptance by consumers in Indonesia and has the potential to win over conventional vehicle. The electric vehicle consumer segmentation is divided into The Economist, The Environmentalist, and The Conservative. <br /> <br /> <br /> The authors recommend that the government establish a policy of tax exemption incentives on electric car products and the development of SPLU (public electric recharging station) on public facilities as an effort to stimulate the adoption of electric vehicle in Indonesia. The recommendation for industry players is to focus on doing marketing for PHEV products at low prices and developing battery technology on BEVs. In the long run, the government and industry players should collaborate to seek the construction of a commercial fast charging station in Indonesia.