Understanding the Consumer Shift to Electric Vehicles in Indonesia: Economic and Environmental Factors

In recent times, the world has been pushing toward more sustainable way of transportation resulting in the rising popularity and advocacy of electric vehicles (EV). This research aims to look into and investigate the factors in influencing the buying intention of electric vehicles (EV) in Indonesia. This research uses two main theories in its method. Those theories are Technology Acceptance Model and Maslow's Hierarchy of Needs. The independent variables used in this research are: Perceived Usefulness, Perceived Ease of Use, Low Price, Esteem, Green Image, Infrastructure, and Tax Incentives, while for the dependent variable used is Buying Intention of EV. Primary data were collected from 110 respondents through online questionnaire shared through media such as WhatsApp groups, Instagram, and Facebook using Likert scale with six-points. The primary data is analyzed through validity testing, reliability testing, and ordinal logistic regression. The results indicate that only Tax Incentives have a significant and positive effect on the Buying Intention of EV, while the remaining variables don't have significant effect despite various study and theoretical support. This might suggest economic factor played major part for Indonesian consumers on considering the purchase of EVs. Government intervention through financial support will be essential in accelerating EV adoption in Indonesia.