POLICY PROPOSAL FOR DEVELOPING ELECTRIC MOTORCYCLE MARKET SHARE IN INDONESIA USING A CHOICE-BASED CONJOINT HIERARCHICAL BAYESIAN APPROACH

• Main Author: Azzahra, Raissa
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/68821
• Institution: Institut Teknologi Bandung

Among the steps taken by the Indonesian government to reduce greenhouse gases (GHG) is reducing the transport sector's emissions. Adopting electric motorcycles widely is seen as a significant step toward achieving this objective. Essentially, an electric motorcycle is a vehicle with an electric motor that has low to no CO2 emissions and uses cost-effective resources. Although promoting electric motorcycle adoption and development is a key step toward reducing GHG emissions, it remains unclear what the policy basis and direction will be for developing electric motorcycles. This study aimed to understand the perceptions and preferences of individual Indonesian consumers toward electric motorcycles. This study combines the choice-based conjoint (CBC) methodology with hierarchical Bayes (HB) estimation to analyze the preferences of Indonesian consumers toward electric motorcycles. Purchase price, cost per 100 km, distance traveled, speed, emission level, and method of refill are the attributes considered. Conjoint simulation is then used to predict market share as well as cluster analysis to identify consumer segments for Indonesian electric motorcycles. It was found that Indonesian consumers have an order of preference for electric motorcycle types, namely PEM, HEM, and BSEM. Developing electric motorcycles in an optimal manner, implementing purchase price incentives, implementing recharge fee incentives, and providing fast charging infrastructure have also been proven to be effective in increasing the electric motorcycle market. Three types of consumers also identified: the economist, the environmentalist, and the convenience seeker. It is recommended that the government implement policies related to purchase price incentives and refill fees in the short term and provide fast charging infrastructure in the long term. In the meantime, the electric motorcycle industry players are expected to be able to concentrate on marketing PEM-type electric motorcycles and choose a suitable marketing strategy for each segment identified. Eventually, industry players must also develop electric motorcycle technology in an optimal manner according to the preferences of Indonesian consumers.