The Importance of Increasing Public Adoption of Electric Vehicles in Reducing Jakarta’s Air Pollution

In response to growing environmental concerns surrounding renewable energy and the adverse effects of extreme weather patterns on air quality, the Indonesian government has initiated efforts to promote the use of electric vehicles (EVs) as a substitute for conventional automobiles inside the country. Therefore, it is crucial to implement strategies aimed at promoting widespread acceptance and utilization of electric vehicles (EVs) by the general population. The objective of this study was to assess the impact of product innovation and price on the public’s adoption of electric vehicles in Jakarta. This study employed a quantitative descriptive methodology, using an associative approach and utilizing SPSS. The data collection methods involve the use of a questionnaire, with the target population being individuals residing in Jakarta who own automobiles. The findings of the investigation are presented as follows: The findings indicate a strong and statistically significant relationship between product innovation and the level of community adoption of electric vehicles in Jakarta. The hypothesis regarding the relationship between the price variable and the community adoption of electric automobiles in Jakarta has been substantiated. The present study examines the impact of both product innovation and price on the public adoption of electric cars in Jakarta.


Introduction
Currently, Jakarta is acknowledged as the urban region that demonstrates the most significant level of pollution.The implementation of various measures targeting pollution reduction has been undertaken by the government, with a special focus on the DKI Jakarta administration.One potential strategy entails the augmentation of public transportation alternatives, encompassing the implementation of railway systems like the LRT and Commuter Line, alongside the provision of TransJakarta buses.Furthermore, the government has aligned itself with central government policies aimed at promoting the widespread use of electric vehicles.In order to encourage citizens to migrate to this environmentally-friendly mode of transportation, the administration has implemented subsidies as incentives.Electrically propelled vehicles, including both two-wheeled and four-wheeled iterations.It is anticipated that the efforts carried out by the administration of DKI Jakarta and the central government would successfully address pollution levels, particularly in the DKI Jakarta region.
Based on the information provided by data.jakarta.go.idThe Air Pollutant Standard Index (APSI) for ISPU or DKI Jakarta had an initial value of 59.4% in January 2019, which thereafter experienced a continuous upward trend.Unbeknownst to many, the issue of vehicular-induced air pollution presents novel prospects for enterprises functioning within the transportation industry.As of mid-2023, Jakarta is experiencing air pollution levels that exceed the World Health Organization's annual air quality guideline value by a factor of 13.2.Consequently, Jakarta has earned the distinction of being the most heavily polluted city globally.It is incumbent upon all stakeholders, encompassing the community at large, to foster an elevated level of consciousness with the aim of mitigating pollution, hence enhancing the quality of air to promote cleanliness and good health.
The issue at hand extends beyond pollution; innovation plays a crucial role in addressing the complexities associated with motor vehicle products, particularly long-term usage of four-wheeled automotives.This is substantiated by the exhaustion of gasoline or other fossil fuel reserves.Hence, transportation businesses encapsulate advancements in electric-powered vehicles for both automobiles and motorcycles.Electric vehicles represent a viable solution to mitigate the adverse effects of environmental pollution, encompassing both acoustic and atmospheric aspects.Moreover, electric vehicles also provide a solution to the issue of diminishing gasoline resources.
In the 2022 survey conducted by McKinsey, it was shown that the transportation sector is responsible for around 17 percent of worldwide greenhouse gas emissions.Hence, it is imperative for Asian nations to foster the growth of both supply and demand for electric vehicles (EVs) in order to effectively achieve their domestic emission objectives and contribute to the global objective of limiting global warming to below 1.5 degrees Celsius.This aligns with the fundamental concepts of constructing sustainable renewable energy systems and implementing appropriate measures to address climate change.
The necessity to swiftly implement initiatives aimed at promoting public knowledge regarding environmentally sustainable autos, especially electric vehicles, is of paramount significance.The adoption rate among the Indonesian population is considered to be the lowest in comparison to other countries in the ASEAN area.Based on the survey data gathered by McKinsey, as cited in Table 1 of the provided databox.According to the findings of the McKensey survey, the adoption rate of electric vehicles was reported to be at 0.1%, which was comparatively lower than the rates seen in Thailand and India, which stood at 0.7% and 0.5% respectively.Malaysia has achieved a higher level of development compared to Indonesia, with a growth rate of 0.3%.The adoption of electric vehicles (EVs) varies among consumers in Asian countries.In contrast to well-established economies like China and Japan, the growing regions of Asia, particularly India and ASEAN, are seeing a relative delay in progress [1].In the year 2021, electric vehicles (EVs) accounted for a proportion of new vehicle sales in the region that was less than 1 percent.However, McKinsey forecasts a substantial increase in the adoption rate of electric fourwheeled vehicles (E4W) in Indonesia.The reason for Thailand and Indonesia emerging as prominent automotive production hubs in the area can be attributed to various factors.
An endeavour aimed at promoting the adoption of electric vehicles involves the identification of several elements that exert effect on the extent of electric vehicle adoption.Vehicles are a category of goods characterized by their intricate nature and extended lifespan.According to Yanuar [2], consumers will take into account the innovation element when evaluating the performance and longevity of a sophisticated and durable product.Innovation can be defined as the outcome of the process of enhancing and utilizing pre-existing items or resources in order to enhance efficiency and effectiveness.Drucker [3] posits that innovation can be conceptualized as a strategic instrument employed by organizations to effectively navigate and capitalize on evolving circumstances, hence establishing novel ventures that diverge from prior corporate endeavours.Kotler and Keller [4] assert that product quality refers to the capacity of a product to effectively fulfil its intended functions, encompassing attributes such as durability, reliability, and correctness, which are inherent to the product as a unified entity.Kotler and 3 Keller propose that the evaluation of product quality encompasses various dimensions, including shape, features, performance quality, conformance quality, durability, reliability, repairability, style, and customisation.
In addition to the aspect of product innovation, it is imperative to take into account the issue of price.Given its intricate nature and long-lasting characteristics, it is evident that this is inherently connected to matters pertaining to pricing.According to Kotler and Keller, the success of a new product is contingent upon the implementation of suitable pricing strategies, effective distribution channels, impactful advertising campaigns, and comprehensive sales assistance.The consideration of prices that align with the characteristics of the product and the purchasing power of consumers holds significant importance in shaping market outcomes.The meticulous consideration of price by consumers when purchasing sophisticated products underscores its significance in the decision-making process.Kotler and Armstrong [5] propose that there exist multiple indications that serve as reflections of pricing, including price affordability, price compatibility with product quality, price compatibility with benefits, and price compatibility with capabilities or competitiveness.
The acceptance of a product by the public and consumers can be influenced by various aspects, including product innovation and automotive product costs.Haustein and Jensen [6] argue that the enhancement of charging infrastructure is of utmost significance to consumers of battery electric vehicles (BEVs).Tarei, P. K., Chand, P., and Gupta, H. [7] assert that many constraints associated with electric vehicles (EVs), including performance and range limitations, total cost of ownership considerations, inadequate charging infrastructure, and insufficient customer understanding regarding EV technology, significantly impact the adoption of EVs.Neves, Marques, and Fuinhas [8] assert that their study provides evidence supporting the notion that the establishment of charging infrastructure has a significant role in promoting the adoption of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).The significance of the charging infrastructure extends beyond its mere existence, as it encompasses not only the overall infrastructure but also places particular emphasis on the presence of fast charging capabilities, which enable expedited recharging of vehicle batteries.
Ghasemi et al. [9] assert that the utilization of Distributed Generation (DG) within Micro Energy Grids (MEGs) yields enhanced profitability alongside risk mitigation.Furthermore, it has been demonstrated that the incorporation of Electric Vehicles into the existing network has the potential to enhance operating revenues, with the associated risks being relatively stable.In the study conducted by Bekel and Pauliuk [10], it was found that battery electric cars (BEVs) exhibit lower costs compared to fuel cell electric vehicles (FCVs).Nevertheless, FCV demonstrates exceptional capability in effectively traversing extensive distances.Khazaei [11] posits that various factors, namely social influence, pricing value, performance expectations, and personal innovation, exert a favourable impact on the purchase intention of electric vehicles.
Meelen, Truffer, and Schwanen [12] argue that society assumes a crucial and unique function in promoting the adoption of electric vehicles.In their study on the plant-based food sector, Taufik, Bouwman, Reinders, Noppers, and Dagevos [13] argue that plant-based food innovation has the potential to serve as an alternative strategy for encouraging consumer acceptance].In the study conducted by Shahadat, et al. [14], results reveal that relative advantage, complexity, observability, perceived cost, top management support, innovativeness, competitive pressure, and government assistance influence SME ICT adoption.Additionally, compatibility, perceived trialability, and organization readiness have not greatly affected SME ICT utilization.According to the Global Firms study published in the Journal of Innovation & Knowledge, technological (product) innovation has a crucial role in achieving successful adoption.
The variable of adoption has not been extensively examined by prior academics.This study makes reference to prior research, including the work undertaken by Ali, et al [15].The aforementioned study also asserts that product innovation exerts a substantial influence on the degree of community acceptance.According to a study conducted by Khazaei [11], it has been found that there is a notable impact of product innovation and price on the acceptance and adoption of products by the general population.The distinction in this study is in the composition of the research participants, who were comprised of lecturers and postgraduate students from University Technology Malaysia, as well as personnel from five organizations located in Kuala Lumpur.This study employs a sample of participants that is characterized by a greater level of generality and broader reach.
This study aims to address the issue of high pollution levels in Jakarta by proposing a solution that aligns with the Indonesian government's policy.Specifically, the research focuses on promoting the adoption of electric energy-based vehicles, which currently face limited uptake.Hence, it is necessary to ascertain the underlying factors contributing to the limited uptake of electric vehicles.The poor adoption of electric vehicles (EVs) is believed to be associated with product innovation considerations.As EVs are novel goods, they must demonstrate innovation in comparison to traditional vehicles to get more acceptance.Price is considered to be another issue that is deemed pertinent to individuals' purchasing power.Price is a significant factor to take into account when making the decision to acquire a new product.The identification of factors associated with the rate of electric vehicle (EV) adoption is expected to provide valuable insights for industry stakeholders, particularly automotive manufacturers and government entities.This knowledge can inform the development of policies aimed at facilitating product innovation for automotive manufacturers and government interventions regarding EV pricing.Based on the aforementioned facts and occurrences, the objective of this study is to examine the influence of product innovation and pricing on the rate of electric vehicle (EV) adoption.

Research Method
The study's population comprises car owners residing in Jakarta, with a total count of 4.111.231individuals as reported by jakarta.bps.go.id in 2021 [18].The research sample consisted of data from 150 respondents.
The primary data obtained from the distribution of questionnaires was subjected to statistical analysis using the SPSS software, which involved conducting several data tests.The research included various methodological tests to ensure the validity and reliability of the findings.These tests included the Validity and Reliability Test, as well as the Classical Assumption Test, which encompassed the Normality Test, Multicollinearity Test, and Heteroscedasticity Test.Subsequently, a Multiple Regression Analysis Test was conducted, encompassing a Partial Test (T), Simultaneous Test (F), and a Determination Coefficient Test, aimed at ascertaining the collective impact of the independent variables on the dependent variable.The subsequent equation represents a multiple regression model: The equation can be expressed as Y = a + bx1 + bx2 + ... + e.

Results and Discussion
The comprehensive findings from the data analysis indicate that the validity and reliability tests have yielded valid and reliable results.Additionally, the classical assumption test has been well met, allowing for the continuation of the regression analysis.The table 2 presented above provides evidence of a statistically significant positive relationship between product innovation and public adoption.The variable pertaining to pricing consistently demonstrates considerable effects, namely in terms of its impact on the adoption of the general population.The results of the multiple regression analysis indicate that both product innovation and price exert a statistically significant influence on the dependent variable.The formulation of the multiple regression equation can be achieved in the following manner Y = 3.890 + 0.392X1 + 0.319X2 Meanwhile, the following table 3 represents the results of simultaneous determination coefficient for product innovation (X1) and price (X2) variables on public adoption (Y)  4 presents the concurrent impact of product innovation and price on the variable of public adoption, yielding a value of 36%.This implies that the outcomes of the F test demonstrate a statistically significant simultaneous effect of 36%.Similarly, the outcomes of the partial and multiple regression analyses indicate that both variables exhibit a statistically significant impact.In the current complex context, the amount of public adoption, which stands at 36%, is determined by two independent variables: product innovation and pricing.It is imperative for electric vehicle manufacturers to carefully consider these two elements in order to enhance the level of community adoption.The findings of the study on product innovation indicate that individuals possess an anticipation for electric vehicles (EVs) to exhibit a distinct and novel appearance and style, diverging from that of traditional automobiles.Similarly, it is essential for electric vehicle makers to provide a diverse selection of options at different price points, ensuring accessibility for a broader demographic.This signifies that the remaining 64% of the data may be subject to the influence of external variables not accounted for in this study.This research does not address several more aspects, namely battery technology and range anxiety, charging infrastructure, incentives and rebates, sustainable energy and emissions reduction, as well as driving experience and performance.Furthermore, Sriram, et al., [16] conducted a study with 172 respondents in India to investigate the factors influencing consumers' intention to adopt Electric Vehicles (EVs).The study employed an exploratory approach and identified several factors that play a role in EV adoption, including financial barriers, vehicle performance barriers, lack of charging infrastructure, environmental conservation, societal influence, and social awareness of electric vehicles.Furthermore, research conducted by Javanmardi et al., [17] examined the determinants of electric vehicle adoption, considering the influence of the COVID-19 epidemic and the degree of sustainable development.The research employed grey regression statistical analysis to investigate the correlation between different parameters and the uptake of electric vehicles.The results of the study revealed that several aspects within the realm of vehicle features, including vehicle dimensions, battery warranty conditions, battery life, and charging facilities, were shown to be significant in promoting the widespread adoption of electric vehicles.Moreover, the investigation's findings suggest that the prevalence of the COVID-19 pandemic has adversely affected the pace of adoption of electric vehicles.Ultimately, the analysis has demonstrated that nations with a greater degree of sustainable development exhibit a greater prevalence of electric vehicles in their respective market shares.This may be attributed to the presence of more robust economic, social, and cultural infrastructures.The discovery of products in the electric vehicle (EV) industry aligns with the Sustainable Development Goals (SDGs) of target 9 and target 11.Sustainable Development Goal 9, which is part of the 2030 Agenda for Sustainable Development, encompasses inclusive and sustainable industrial development, resilient infrastructure, and innovation.The development of industry leads to an augmentation of value creation and facilitates the utilization of scientific advancements, technological innovations, and encourages higher levels of investment in skills and education.Consequently, this enables the allocation of resources to fulfill broader, inclusive, and sustainable development goals [19].
The innovation of electric vehicle (EV) products, with a focus on enhancing their environmental friendliness and energy efficiency, will contribute to the promotion of sustainable transportation.This aligns with the objective outlined in the 11th Sustainable Development Goal, which aims to foster inclusive, safe, resilient, and sustainable cities and human settlements.By prioritizing EV product innovation, the goal of creating sustainable urban environments can be realized.Sustainable transport is integrated into several Sustainable Development Goals (SDGs) and targets within the 2030 Agenda for Sustainable Development.This integration is particularly evident in areas such as food security, health, energy, economic growth, infrastructure, and cities and human settlements.The significance of transportation in addressing climate change is increasingly acknowledged within the framework of the United Nations Framework Convention on Climate Change (UNFCCC).The transport sector is expected to have a significant impact on the successful implementation of the Paris Agreement, as it currently accounts for nearly a quarter of global greenhouse gas emissions related to energy consumption [20].Furthermore, these emissions are to experience substantial growth in the foreseeable future [21].Therefore, it is imperative to promptly address this issue by expediting the rate at which the general public embraces electric vehicles (EVs).

Conclusions.
In light of the findings, it is evident that certain conclusions can be drawn as follows: the adoption of electric automobiles in Jakarta is positively influenced by product innovation, the price of electric automobiles in Jakarta exerts a substantial influence on their level of acceptance among the general people, thus the adoption of electric automobiles in Jakarta is significantly influenced by product innovation and price.

Recommendations.
While the recommendation that can be proposed are that during the course of this study, researchers identified some limitations that required rectification.The subsequent recommendations encompass both theoretical and practical advice that scholars can provide.The researchers express the aspiration that future investigations will encompass additional aspects or causes pertaining to the adoption of communities.In order to enhance the outcomes of this research, it is important to incorporate multiple variables.This study aims to expand and diversify the subject pool in order to examine the comprehensive public acceptance of electric vehicles in Jakarta.This is expected to facilitate a deeper understanding of the phenomenon.The Indonesian government is anticipated to provide support and substantiate efforts towards the development of electric vehicles in Indonesia, with a particular emphasis on domestically manufactured ones.Electric vehicle makers are anticipated to offer practical insights pertaining to the aspects that influence community enthusiasm in purchasing electric vehicles.Consumers perceive the size of electric automobiles' style and design to be quite compact.In forthcoming times, it is imperative for electric vehicle manufacturers to offer contemporary styles and designs, as the aesthetic characteristics of electric cars have become increasingly comparable to those of conventional automobiles.It is often believed that electric vehicles continue to be perceived as excessively expensive and lacking in variety.Expanding the price range of electric vehicles to accommodate the purchasing power of individuals belonging to the lower middle class.

Table 1 :
Adoption Rate of Electric Vehicles in ASEAN

Table 2 .
Multiple Regression Coefficients Coefficients a

Table 4 .
Simultaneous F-test Result ANOVA a