IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i14p5855-d1431879.html
   My bibliography  Save this article

Driving the Transport Electrification: Exploring Stakeholders’ Perceptions and Actions in the Indonesian Automotive Industry Transition to Electric Mobility

Author

Listed:
  • Muhammad Habiburrahman

    (Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Depok 16424, Indonesia)

  • Rahmat Nurcahyo

    (Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Depok 16424, Indonesia)

  • Azanizawati Ma’aram

    (Department of Materials, Manufacturing and Industrial Engineering, Faculty of Mechanical Engineering, Universiti Teknologi Malaysia, Skudai 81310, Johor, Malaysia)

  • Kaoru Natsuda

    (Graduate School of Asia Pacific Studies, Ritsumeikan Asia Pacific University, Beppu-shi, Oita 874-8577, Japan)

Abstract

The rise of all types of electric vehicles (xEVs) is reshaping the global automotive sector, marking a new era of electric mobility (eMobility). While existing research predominantly explores the transition towards eMobility from the perspectives of automakers, governments, and users, a notable gap exists regarding the role of internal combustion engine (ICE) component manufacturers. This research aims to examine the transformative journey of the Indonesian automotive industry, specifically focusing on the strategic responses of Indonesian ICE component manufacturers towards eMobility. This study employs a multi-level perspective (MLP) approach through 12 semi-structured interviews with stakeholders representing government bodies, associations, automakers, academia, startups, and ICE component manufacturers. This research sheds light on stakeholders’ perceptions and actions in the transition to eMobility. The findings reveal various factors influencing transition, including current low xEV demand, companies’ perceptions of xEVs, huge investments, changes in the supply chain, technological capabilities, and government policies. This research provides an overview of the strategies for ICE component manufacturers, along with their risks and advantages. This research also recommends two policies for the Indonesian government: a gradual transition and more support for local xEV and component manufacturing.

Suggested Citation

  • Muhammad Habiburrahman & Rahmat Nurcahyo & Azanizawati Ma’aram & Kaoru Natsuda, 2024. "Driving the Transport Electrification: Exploring Stakeholders’ Perceptions and Actions in the Indonesian Automotive Industry Transition to Electric Mobility," Sustainability, MDPI, vol. 16(14), pages 1-20, July.
  • Handle: RePEc:gam:jsusta:v:16:y:2024:i:14:p:5855-:d:1431879
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/14/5855/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/16/14/5855/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fajar Nurrohman Haryadi & Arionmaro Asi Simaremare & Shochrul Rohmatul Rohmatul & Dzikri Firmansyah Hakam & Kevin Gausultan Hadith Mangunkusumo, 2023. "Investigating the Impact of Key Factors on Electric/Electric-Vehicle Charging Station Adoption in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 434-442, May.
    2. Grace Chun Guo & Crystal X. Jiang & Qin Yang, 2017. "The Effect of Government Involvement on Chinese Firms' Corporate Entrepreneurial Activities: The Case of Chinese Automobile Industry," New England Journal of Entrepreneurship, Emerald Group Publishing Limited, vol. 20(1), pages 06-16, March.
    3. Wu, Zhanglan & Shao, Qinglong & Su, Yantao & Zhang, Dan, 2021. "A socio-technical transition path for new energy vehicles in China: A multi-level perspective," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    4. Mailinda Eka Yuniza & I Wayan Bhayu Eka Pratama & Rahmah Candrika Ramadhaniati, 2021. "Indonesia s Incentive Policies on Electric Vehicles: The Questionable Effort from the Government," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 434-440.
    5. René Bohnsack & Ans Kolk & Jonatan Pinkse & Christina M. Bidmon, 2020. "Driving the electric bandwagon: The dynamics of incumbents' sustainable innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 727-743, February.
    6. Mohamad, Mostafa & Songthaveephol, Veerasith, 2020. "Clash of titans: The challenges of socio-technical transitions in the electrical vehicle technologies – the case study of Thai automotive industry," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    7. Szalavetz, Andrea, 2022. "Transition to electric vehicles in Hungary: A devastating crisis or business as usual?," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Münch, Christopher & Marx, Emanuel & Benz, Lukas & Hartmann, Evi & Matzner, Martin, 2022. "Capabilities of digital servitization: Evidence from the socio-technical systems theory," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    2. Geels, Frank W. & Ayoub, Martina, 2023. "A socio-technical transition perspective on positive tipping points in climate change mitigation: Analysing seven interacting feedback loops in offshore wind and electric vehicles acceleration," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    3. Xi, Xi & Ren, Feifei & Yu, Lean & Yang, Jing, 2023. "Detecting the technology's evolutionary pathway using HiDS-trait-driven tech mining strategy," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    4. Valery Michaux, 2022. "Transformations in the automotive sector: complex change, deeper reconfiguration or dangerous disruption? [Les six mutations du secteur automobile : simple transformation, reconfiguration plus prof," Post-Print hal-03736166, HAL.
    5. Wang, Xiaoling & Zhang, Tianyue & Nathwani, Jatin & Yang, Fangming & Shao, Qinglong, 2022. "Environmental regulation, technology innovation, and low carbon development: Revisiting the EKC Hypothesis, Porter Hypothesis, and Jevons’ Paradox in China's iron & steel industry," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    6. Jonatan Pinkse & René Bohnsack, 2021. "Sustainable product innovation and changing consumer behavior: Sustainability affordances as triggers of adoption and usage," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3120-3130, November.
    7. Ben Zhang & Lei Ma & Zheng Liu, 2020. "Literature Trend Identification of Sustainable Technology Innovation: A Bibliometric Study Based on Co-Citation and Main Path Analysis," Sustainability, MDPI, vol. 12(20), pages 1-20, October.
    8. Kantapich Preedakorn & David Butler & Jörn Mehnen, 2023. "Challenges for the Adoption of Electric Vehicles in Thailand: Potential Impacts, Barriers, and Public Policy Recommendations," Sustainability, MDPI, vol. 15(12), pages 1-21, June.
    9. Khatua, Apalak & Ranjan Kumar, Rajeev & Kumar De, Supriya, 2023. "Institutional enablers of electric vehicle market: Evidence from 30 countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    10. Muhammad Iskandar Hamzah & Nurul Syafiqah Tanwir & Siti Norida Wahab & Muhammad Hafiz Abd Rashid, 2022. "Consumer perceptions of hybrid electric vehicle adoption and the green automotive market: the Malaysian evidence," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 1827-1851, February.
    11. Medina-Molina, Cayetano & Pérez-Macías, Noemí & Fernández-Fernádez, José Luis, 2023. "The use of micromobility in different contexts. An explanation through the multilevel perspective and QCA," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    12. Romel Ramón González-Díaz & Ángel Eduardo Acevedo-Duque & Santos Lucio Guanilo-Gómez & Elena Cachicatari Vargas, 2021. "Business counterintelligence as a protection strategy for SMEs," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(3), pages 340-352, March.
    13. Liu, Qin & Wen, Xiaonan & Cao, Qinwei, 2023. "Multi-objective development path evolution of new energy vehicle policy driven by big data: From the perspective of economic-ecological-social," Applied Energy, Elsevier, vol. 341(C).
    14. Putu Agus Aditya Pramana & Dzikri Firmansyah Hakam & Handrea Bernando Tambunan & Kemas Muhammad Tofani & Kevin Gausultan Hadith Mangunkusumo, 2024. "How Are Consumer Perspectives of PV Rooftops and New Business Initiatives in Indonesia’s Energy Transition?," Sustainability, MDPI, vol. 16(4), pages 1-17, February.
    15. Irja Vormedal & Jonas Meckling, 2024. "How foes become allies: the shifting role of business in climate politics," Policy Sciences, Springer;Society of Policy Sciences, vol. 57(1), pages 101-124, March.
    16. Na Zhang & Bon‐gang Hwang & Xiaopeng Deng & Yan Ning, 2020. "Achieving transient competitive advantage in high‐speed rail projects bidding: Sustainable development perspective," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1738-1754, November.
    17. Sebastian Hinderer & Andreas Kuckertz, 2022. "The bioeconomy transformation as an external enabler of sustainable entrepreneurship," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 2947-2963, November.
    18. Zhao, Yuntong & Jian, Zhaoquan & Du, Yushen, 2024. "How can China's subsidy promote the transition to electric vehicles?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    19. Petr Pavlínek, 2023. "Transition of the automotive industry towards electric vehicle production in the east European integrated periphery," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 35-73, February.
    20. Xin Ma & Hong Jiang & Lijuan Tong & Jingyi Zhang & Mengyuan Dong, 2023. "Sustainability of the New Energy Automobile Industry: Examining the Relationship among Government Subsidies, R&D Intensity, and Innovation Performance," Sustainability, MDPI, vol. 15(20), pages 1-16, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:14:p:5855-:d:1431879. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.