Jakarta E-Prix, The Momentum to Uphold Electric Vehicles

For more than seven years, the International Automobile Federation (FIA) has been struggling in introducing and developing electric technology through the Formula E racing series. Various advances have been made, including embedding far more efficient batteries in race car.

This achievement was clearly shown when Formula E was held a few days ago at the 2022 Jakarta E-Prix. The racing event, which was first held in Indonesia, is expected to strengthen the country's position to be more serious in switching to electric vehicles. That is the message of Alberto Longo as Co-Founder and Chief Championship Officer of Formula E, in the “Jakarta E Prix Sustainability Talk Finale: Jakarta Electric Race. Change. Accelerated” on Tuesday, 7 June 2022.

In the webinar held by JakPro, Tempo, and Allianz, Alberto Longo hopes that all parties, including the government, regulators, the private sector, and the public, collaborate in implementing electric vehicles (EVs) as a means of daily mobility. "Indonesia, as the country with the largest economy in Southeast Asia, not only has the opportunity, but also needs to support this movement to fight against global warming," he stated.

Ahmad Safrudin, Executive Director of the Joint Committee for the Elimination of Leaded Gasoline (KPBB), said that besides coping with the climate crisis, the use of electric vehicles brings three benefits. They are reducing air pollution in urban areas, as evidence of global participation in decreasing carbon emissions in accordance with Indonesia's commitment to the Paris Agreement, and the third benefit is the opportunity to spur national economic growth.

The study on national economic growth has been carried out by KPBB since 2012. At that time, KPBB offered the government a number of advantages if they immediately adopted electric vehicles. According to Ahmad Safrudin, Indonesia can enjoy economic benefits of up to IDR 6,900 trillion in the next 10 years.

The study was later developed following the introduction of the EV battery product. In 2020, the KPBB offers another calculation to the government that if they immediately start the EV battery industry, there will be an economic profit of around IDR 9,603 trillion in 2030.

Therefore, according to Ahmad Safrudin, the first key to launch an EV in Indonesia must start from a government initiative. One of the most important initiatives is to issue regulations that encourage the use of EV vehicles.

“For example, the government can make regulations on incentives and disincentives. Supposed that a motor emits 60 grams per kilometre. Then make a rule if the emission produced by the motorbike is more than that number, it will be subject to excise. On the other hand, if it is less than the lift, it will get an incentive. With this regulation, I believe there will be an increase in market penetration,” said Ahmad Safrudin.

He also encouraged the private sector not to wait, yet keep making breakthroughs and innovations. "Don't be afraid to be a risk taker. You must have the courage to create changes," he emphasized.

One of the private parties who has made innovations is Elders Garage. Starting from a custom motorbike workshop that had received an order to make a chopper motorbike for President Jokowi, he made amazing creations by converting a Vespa into an electric motorbike with special tools.

Chief Procurement & Business Elders Garage, Richard Andrea, explained the purpose of making the converter is because he wanted to see the next generation still be able to ride classic motorbikes when the electric era has expanded in the future. "I want existing (fossil-fuel) motorcycles to be preserved, reused, and recycled," he said.

According to Richard, the interest in this converter came from various countries, such as Germany, Malaysia, and Pakistan. That is why the creative potential of Indonesian people must be utilized immediately so that the country can play a role in electric vehicle technology. Then it will lead to economic benefits because the development of electric vehicles has a multiplier effect.

This widespread economic effect has even been exploited by Allianz. Dony Sinanda Putra as Head of Product & Underwriting of PT Asuransi Allianz Utama Indonesia, explained that Allianz is determined to be a leader in the sustainability category of financial industry, especially with three main missions. First, to contribute in overcoming the climate crisis by supporting the achievement of zero carbon. Second, to support the community, especially the next generation, to practice a sustainable way of life. Third, to ensure that the capital and insurance support the sustainability efforts. For example, by revoking support for businesses that still prioritize the use of fossil energy.

Allianz's commitment in 2022 is to reduce the use of paper in the company by 20 percent, reduce electricity consumption in the office by 5 percent, and carry out Environmental Social Responsibility (TJSL or CSR) actions, such as by reducing and collecting more than 2 tons of inorganic waste on last January.

One real action that is very important, said Dony, is Allianz's move to withdraw the company's participation as a race promoter that still uses fossil fuels. “The real evidence can be seen in this E-Prix. We used to sponsor fossil fuel, but then we switched and chose to sponsor Formula E," he said. (*)