Track: Industrial Management

Abstract

The target of reducing greenhouse gas emissions led the Indonesian government to set a medium-term action called RUEN. For the transportation sector which produces the second largest emission, electric car use was being promoted. The government implemented several policies to encourage people to swiftly move from fuel cars to electric cars. Since the target achievement of electric car sales is still very low which is around 5%, the author studies the impact of policies that have been applied by using the system dynamics method. The government of Indonesia has applied policies of tax deduction, tax redemption, and road exemption to attract new electric car users. In this research, the author finds that policies do not significantly affect sales of electric cars. Considering the target of 132.000 units in 2030, the sales of the remaining 8 years need to be drastically increased. It could be done by applying several new policies referring to other countries.