Unveiling factors to increase electric vehicle adoption through green banking in Indonesia

Abstract

The electric vehicle population in Indonesia remains significantly below the government’s targets aimed at reducing carbon emissions. This study seeks to identify factors that could enhance the adoption of electric vehicles in Indonesia, thereby accelerating their growth. Using a qualitative approach, the research explores these factors, which are analyzed through thematic analysis. The findings reveal seven crucial factors necessary for expanding the electric vehicle population in Indonesia: ownership costs, functionality, vehicle identity, policies and regulations, environmental impact, facilities and services, and motivations. Challenges and expectations, as well as green financing from banks and multifinance for electric vehicles, are also examined. This study concludes that the role of green banking financing for electric vehicles will follow the readiness and maturity of the electric vehicle ecosystem itself. Additionally, based on the data analysis, the study offers several recommendations to promote electric vehicle growth, including continuing subsidies and tax incentives, developing and maintaining infrastructure, nurturing the electric vehicle ecosystem, innovating to reduce prices, increasing literacy and awareness, and providing access to competitive and attractive financing options for the community. This research concludes that improving the understanding and management of these factors can significantly boost electric vehicle adoption.