Impact Analysis and Adaptation Strategy of Electric Vehicle Policy Change

President Donald Trump’s recent decision to repeal the electric vehicle mandate in the United States has had significant impacts across multiple sectors. This move not only affects the automotive industry, but also has far-reaching implications for other sectors. (MSN, 2025)

At the same time, Tesla announced that it was ceasing production of some of its vehicle models, arguing that this strategy was more favorable for the long-term period. This decision led to a broader discussion about the future of electric vehicles and the role of regulation in supporting the clean energy transition. (CNBC Indonesia, 2024)

Previously, the Biden administration had established various incentives to encourage the adoption of electric vehicles, including a $7,500 tax credit for their purchase and funding for charging infrastructure. The goal was to reduce greenhouse gas emissions and accelerate the transition to sustainable transportation. However, with the latest executive order, many of these initiatives are being halted or reviewed. (The Verge, 2025)

Multi-Dimensional Impact and Perspective on Indonesia

• Economy

As a country with the world’s largest nickel reserves, global policies related to electric vehicles will affect the supply chain and investment in Indonesia’s nickel mining sector. Reduced demand for vehicles could negatively impact Indonesia’s nickel exports and industrialization strategy.

• Social

As global policies shift, Indonesia will need to adjust its industrial strategy to remain relevant. Workers in the mining and electric vehicle manufacturing sectors will be a potential area of impact if the transition to electric vehicles slows.

• Environment and Ecology

For some, electric vehicles are expected to reduce air pollution in big cities like Jakarta. However, with Indonesia’s main energy source still coming from coal, the benefits of electric vehicles in reducing carbon emissions are questionable.

But are electric vehicles really the solution to sustainability?

If anything, they offer a long-term solution to reduce dependence on fossil fuels and lower carbon emissions during their use. This is because the production and recycling of EV batteries has a major environmental impact. Mining raw materials such as lithium and nickel can lead to environmental degradation, exploitation of workers, and pollution of natural resources. (Kompas, 2022)

If not managed properly, increased nickel mining for EV batteries could damage the environment, especially in areas like Sulawesi and Maluku that are rich in this resource. (Intisari, 2023)

The sustainability of electric vehicles cannot only be seen in terms of reducing emissions during use, but also from the entire supply chain. If energy production is still dependent on fossil fuels and battery recycling is not optimal, electric vehicles may not be the best solution for global transportation sustainability.

Analysis of Transportation Alternatives in Indonesia

As an impact consultant, Maxima believes that a data-driven and balanced approach to decision-making is key to dealing with these changes. Therefore, some recommendations for stakeholders are:

1. Make Decisions Based on Comprehensive Studies: Before adopting or abandoning electric vehicle technology, every decision should consider the full economic, social, and environmental impacts.
2. Support Sustainable Innovation: Other solutions such as alternative fuels, hybrid vehicles, and improved transportation efficiency should remain part of the long-term strategy.
3. Public Education and Awareness: Accurate, research-based information on vehicle development and alternative technologies should be made available to the public so they can make informed decisions.
4. Encourage Adaptive Regulation: Government policies should support innovation without severely hampering industry development, so that sustainability can be achieved.

Policy changes related to electric vehicles demonstrate the importance of balancing economic, social and environmental decision-making. With a data-driven approach and adaptive strategies, stakeholders can stay on the path of sustainable energy transition.

Maxima Impact Consulting is committed to helping companies, governments, and organizations objectively analyze impacts and develop the best strategies for future sustainability. Do you want your company and organization to contribute to a sustainable future? Consult with Maxima Impact Consulting and find the right solution!