The innovation of Electric Motorcycle Swap-Battery (EMSB) technology encourages the formation of a new ecosystem at the beginning of the supply chain, including technopreneurs and startups from manufacturers, suppliers, and distributors for commercialization. Swappable Batteries (SB), Electric Motorcycle (EM), and Battery Swap/Charging Station (BSCS) are the main components of the EMSB. In the EMSB system, motorcyclists exchange an electric motor battery that has run out of electricity for a fully charged battery. The Swappable Battery (SB) has a coupler for connecting the battery swap to an electric vehicle charger or to a charging rack, locking or unlocking the device, a battery management system, a temperature management system, an electrical protection circuit, and a battery-swap holder (International Electrotechnical Commission Technical Specifications 62840-1 -2016). The three main components of the EMSB have attracted the attention of supply-chain players and governments to find evolving solutions to enable faster adoption and diffusion of EMSB in Indonesia. In the future, the battery-swapping policy with interoperability standards will significantly reduce the cost of operation due to inter-brand collaboration and, therefore, will massively support commercialization for early investors. This is the reason to propose a swappable standard in the early stage.
4.1. Analysis of Level of Readiness to Implement SB Standard
This section contains the interpretation of the data-processing results for the condition of the readiness of EMSB stakeholders to implement the SB standard. The points analyzed in this section refer to the readiness criteria determined at the variable-operationalization stage. The discussion in this section is related to the readiness level for each criterion and the TCC value.
4.1.1. Technoware Readiness
Infrastructure is an essential factor for supporting the success of the standard application process. Based on the summary of the answers from the respondents, seventeen agencies have the potential to become testing labs, and eight agencies have the potential to become product-certification bodies. Several agencies can perform two functions (testing and certification) at once from these agencies. In addition, secondary data collection related to the population of testing labs and product-certification bodies in Indonesia was carried out; the data were obtained from the website of the national accreditation committee. From these population data, it is evident that there are 1322 testing labs and 605 accredited product-certification bodies. Each of these labs and institutions has a scope of testing and certification. Of the many institutions, only a few provide services for the battery scope. It is known that there are eight testing laboratories and nine product-certification bodies that provide services for battery scopes. However, the survey results show that the testing lab facilities and certification bodies in Indonesia adequately support the implementation of the SB standard.
The readiness of SB testing equipment is described as follows. Based on the readiness data, it is known that almost all the items in the technoware component have a “medium” readiness level, except for the “construction test equipment of swappable battery system” indicator, which has a “high” readiness level. The level shows that the testing equipment of conformity agencies in Indonesia is quite ready to test the battery. However, the readiness needs to be improved because, even though they have been able to test battery products, only a few agencies provide test services for electric vehicle applications.
4.1.2. Humanware Readiness
The human resource competencies referred to in this case are the capabilities, expertise, and skills of HR involved in implementing standards, standardization, and conformity assessments. This criterion ensures the availability of competent human resources for involvement in the implementation of standards. The survey shows that the human resources involved in implementing the SB standard have high competence. The competence is supported by the existence of various publications, research and development on electric vehicles, and discussions and forums that are often held by universities, manufacturing companies, and standards regulators.
Human resource development is an effort to improve the quality and quantity of human resources from various stakeholders involved in implementing standards. There is a high number of competent and qualified human resources from various stakeholders who play a role in implementing standards. The competency and qualification are supported by the high effectiveness of the coaching and training programs organized by the standardization body for human resource stakeholders in supporting the successful implementation of standards.
The level of awareness of various parties of the application of standards is an important aspect to be considered to support the successful implementation of standards. In this case, the stakeholders and public awareness level regarding the importance of implementing an SB standard also contribute to determining the level of readiness of human resources. Various parties involved in implementing the standard have a high awareness of the importance of implementing the SB standard.
The accommodation of the standard was analyzed with the aim of measuring how thriving stakeholders in Indonesia can comply with the SB standard when implemented. The accommodation of this standard could be through financial investment for meeting standard criteria, motivation, and a willingness to comply with standards. The survey shows that stakeholders in Indonesia are considered to adapt very well if standards are applied.
4.1.3. Inforware Readiness
The availability of a sound information system can support standard implementation activities by providing the information needed by various parties. The required information includes standard documents, testing and calibration laboratories, certification bodies, standard accreditation and certification procedures, and much more. The national standardization body provides the information system for standardization and conformity-assessment activities, both online and offline, through the provision of Technical Service Offices spread across various provinces. The available information system has enabled good ease of access and has adequate integration and capabilities that are largely optimal in supporting the implementation of standards.
The existence of written regulations, procedures, and programs related to applying standards contributes to the readiness of information tools. The regulations referred to in this case are various regulations and programs related to electric vehicles and charging systems. Based on the survey results, regulations related to electric vehicles and charging systems support efforts to implement the SB standard, are well-conveyed to stakeholders and the wider community, create awareness, and educate stakeholders and the broader community regarding the importance of implementing standards.
In this case, the communication referred to is promotion and socialization to various parties related to standardization and conformity assessment. The standardization body has conducted promotion and socialization through standard dissemination to business actors, direct socialization by holding workshops with stakeholders, and promotion through social media such as Instagram and YouTube. This criterion was analyzed with the aim of measuring the effectiveness of the promotion and socialization programs that have been carried out. The survey shows that promotion and outreach programs for stakeholders and the public have effectively supported the successful implementation of the SB standard.
4.1.4. Orgaware Readiness
The strategic plan criterion aims to determine the extent of the availability of a strategic plan from the government and standards regulator to implement an SB standard. Based on the data-processing results, the indicator shows a high value of readiness, meaning that the strategic plan for implementing this standard has been well-structured.
The framework is a procedure for implementing standards through appropriate conformity-assessment activities. In this case, the framework used in standardization activities is a conformity-assessment scheme used as the basis for the harmonization of conformity-assessment procedures by conformity-assessment agencies. The conformity-assessment scheme was set efficiently, making it easier to manage permits, administration, and standard certification.
Collaboration with various parties to build public awareness and interest in applying standards is an essential form of cooperation to support the application of standards. The community actively participates in normal development activities to be easily implemented. In addition, industry and conformity-assessment agencies are actively involved in ensuring the infrastructure needed to implement the SB standard.
Financial support or funding from the government for implementing standards is a no-less-important factor to consider. This budget will later be used to provide infrastructure and equipment, develop standards, improve the quality of human resources, and run coaching and training programs. The state has sufficient finances to comply with standards and technology investments.
4.1.5. TCC Analysis
The TCC is the total contribution of the technological components that play a role in a system, taking into account the intensity of the contribution of each component. Obtaining the TCC value involved a series of assessments. The process involved statements/questions regarding various criteria and indicators to be prepared to implement the SB standard. The resulting TCC value represents the technological sophistication and technological readiness.
According to the calculations in the previous section, the TCC value is 0.54. Based on the classification of technological sophistication [111
], the TCC value demonstrates a good level of technological sophistication because it is between 0.5 and 0.7. The value shows that stakeholders in Indonesia are ready or able to implement an SB standard.
The magnitude of the TCC value is influenced by the magnitude of the contribution value of the components of technoware, humanware, inforware, and orgaware. Based on the radar diagram in Figure 4
, the contribution value of each component is known. The technoware component has the lowest contribution value, which is 1.19, while the humanware, inforware, and orgaware components have the higher contribution value, which is 1.32. The difference in value is because the level of technoware readiness is lower than the levels of the other three components, where the readiness of technoware is still at the “medium” level. In comparison, the other three components have reached the “high” level. Technoware components need to be improved to increase the value of the TCC or the readiness of stakeholders as a whole. The technoware readiness can be improved by improving each of the criteria and indicators that have not yet reached the desired level.
4.2. Economic Benefits of Standard
4.2.1. Impacts of SB Standard Implementation
The potential impacts for the battery-manufacturing industry of the SB standard’s implementation were identified. In addition, the most significant impacts were also identified based on the Pareto diagram. The five most significant impacts of the SB standard are as follows: clearer product specifications, more effective quality management, better product availability, more effective management of health/safety/environment (HSE), and product quality improvement.
Product specifications are essential in product development and product engineering activities. With the standard, companies do not need to develop product specifications independently. Product specifications that refer to standards can make it easier for the company to collect relevant materials, create product designs, and form processes. Thus, companies can save time and effort because they can directly adjust and refer to available standards. In addition, product design activities can be carried out more quickly because of the specifications already available in the standard. Thus, the time needed to develop a product is reduced, and the time to market can be shortened.
Quality management serves to maintain the level of quality desired by a company. It consists of quality control, quality assurance, and quality improvement. Quality management activities can be carried out more effectively based on standards when the latter exist. This can lead to a process of continuous improvement. When the overall quality is maintained, various failures in operations can be minimized, thereby reducing the possibility of rejects and defects being produced. Thus, the company can save many costs in the production process, which involves time, human resources, and materials, because it can minimize handling failed/defective products.
Product inventory control aims to determine the inventory, reduce the risk of delivery delays, and anticipate sudden changes in demand. The application of standards affects the warehousing needs, which will cause less inventory to be stored in the warehouse due to the high availability of standard products. The reduced need for warehousing will minimize the expense of managing inventory and the costs involved in keeping goods in the warehouse.
HSE management serves to protect workers and other people in the workplace by ensuring their safety and controlling risks from equipment, assets, and production sources, ensuring that they are used safely and efficiently to avoid accidents and occupational diseases. The effective implementation of HSE can also reduce various failure rates due to the risks posed by not using standard products and equipment. The number of accidents, injuries, and deaths can be reduced. In addition, improving the efficiency of HSE in the company can boost productivity in production activities, thereby reducing the consumption of energy in the form of fuel or electricity. Therefore, the existence of standards can reduce product failures that result in defective products and rejects, minimizing the number of products that must be discarded because they cannot be reused or repaired.
Improved product quality affects the responses of buyers or customers. Products that have been labeled standard must have passed a test and are suitable for use, so they can be trusted regarding the reliability of the features and specifications. Certified products will protect consumers, increasing buyer satisfaction with the products. Increasing the level of consumer satisfaction can reduce the number of complaints, such as those about the quality and functionality of the product. In addition, it can minimize the submission of warranty claims because the products purchased are of good quality. Thus, the company can save time that would be spent responding to customer complaints and reduce the probability of having to pay warranty compensation.
Based on the identification of the impact of implementing the above standards, a chart that explains the relationship between the significant impacts and the activities carried out for the existing business functions can be drawn, as illustrated in Figure 8
4.2.2. Value Drivers and Operational Indicator Analysis
Value drivers are critical organizational capabilities that give companies a competitive advantage. The analysis of value drivers is crucial because it can help to elucidate the company’s strategy and activities in various business functions that add value. If the impact of standards can be assessed for activities closely related to value drivers, their impact on value creation may be much higher than that in other activities. Value drivers can be related to the activities of a particular business function. They may extend to the activities performed by several business functions or even to specific operations of the entire company. Based on the impact identification described in the previous section, the business functions for which the impact provides added value could be observed. Then, the value drivers could be analyzed.
Operational indicators are measurable variables of company activities that show an increase or decrease in performance. Operational indicators are used to measure the impact of the standard on the activities performed by the selected business function and to measure its contribution to the creation of corporate value (contribution to the EBIT or gross profit of the company). The selection of appropriate operational indicators is one of the essential tasks of an economic benefits assessment. Concerning the significant impacts mentioned above, each has different operational indicators. Based on the impact identification in the previous section, operational indicators could be developed for each impact. Table 8
below shows the relationship between the impact of the standard, the associated value drivers, and operational indicators.
The earnings before interest and tax (EBIT) is a crucial indicator applied to valuation and used to measure company value creation. EBIT represents a company’s gross profit, i.e., revenue minus expenses, at a given point in time. The implementation of the standard is expected to cause a change in the values of the operational indicators for the selected business function. This impact, converted into monetary units, shows that the value created by the firm is increased by (a) a reduction in costs, (b) a contribution to higher revenues, or (c) a combination of both. Figure 9
highlights the relationship between the value drivers and operational indicators determined, which are then summarized regarding the overall contribution to a company’s EBIT. The aggregation of all these operational indicators produces the EBIT. This EBIT is the value of the economic benefits of implementing the SB standard in this study.
Based on the estimated impact on data processing, the percentage value is 60–80%. This value is an estimate of the change in a particular activity after implementing the standard. This value was used in the calculation of the EBIT. The revenue and expense elements shown in Figure 8
were also used to calculate the EBIT. To obtain the EBIT, we aggregated the estimated increase in the sales of battery packs and the estimated cost savings, including overhead costs, lithium battery production costs, and labor costs. Expenses, such as depreciation or capital expenditures, research and development, marketing, transportation and distribution, warranties, profits, and others, were included in the overhead costs. The elements of income and costs were estimated annually and multiplied by the percentage estimated impact value. Figure 10
shows the projected total economic benefit (EBIT) earned in one year after the battery-swap standard is implemented.
4.3. Benefit–Cost Ratio
We conducted a feasibility study of implementing a standard battery swap by comparing the overall costs and benefits. The costs component was generalized based on the measured readiness level. Meanwhile, the benefits component was compiled based on the impact identification and the impacts’ estimated value according to the analysis.
This study’s generalization of the cost components refers to the cost model, which classifies costs into three categories: capital expenditure, implementation costs, and training costs [56
]. In this study, the capital expenditure is the cost incurred by the need to repair technoware components, which involves infrastructure and testing equipment. Based on the analysis of the level of readiness, it is known that it is necessary to make improvements to the technoware component to improve its readiness. The implementation costs are defined as the costs of implementing the standard; this cost is an aggregation of all the costs that must be incurred by the stakeholders involved. These costs were generalized based on readiness indicators for the humanware, information, and orgaware components. The costs related to training include bringing technology experts to train employees, training materials, expert fees, and costs for employees who attend training. The following Table 9
shows a recapitulation of the cost components that have been processed.
The generalization of the benefits component was obtained from the benefits assessment analysis that was carried out, where the most significant impacts were identified. From the analysis carried out for the assessment of the economic benefits, it is known that the operational indicators measure the value of the impact caused and can be expressed as an entity that can be quantified, in the form of either cost savings or increased revenues. The aggregate of all the operational indicators is expressed in the EBIT and represents the value of the economic benefits that the company will obtain. Therefore, in this case, the EBIT value was included in the benefits component with a deduction of the applicable income tax.
Assuming one electric motorcycle requires one battery pack, then total sales of electric motorcycles = sales of battery packs. Demand for electric vehicles in the first year = 7601 units [113
]. Battery capacity for one motor unit = 2 kWh (e-viar.com/order;2021 [113
]). Thus, the demand for battery packs = 7601 units/year × 2 kWh = 15,202 kWh/year, and the calculation is summarized in Table 10
The labor cost for lithium battery production is assumed to be 5% of the selling price of the battery [114
]. Thus, labor costs can be calculated as follows:
Labor cost in 1 year = 5% × selling price × demand = 5% × $137/kWh × 15,202 kWh/year = 104.133.70 $/year = IDR 1,478,698,540/year.
Benefit of reducing labor costs = 60% × IDR 1,478,698,540 = IDR 887,219,124 per year.
Costs such as depreciation or capital expenditures, research and development (R&D), marketing, transportation and distribution, warranties, profits and others are included in overhead costs [97
]. So, in this case, overhead costs consist of R&D costs (
), costs for handling defective/failed items (
), inventory costs (
), warehousing costs (
), work accident insurance costs (
), waste-handling costs (
), and warranty compensation fee (
). Then, the overhead cost for lithium battery production is assumed to be 30% of the selling price [114
]. Thus, the overhead costs can be calculated as follows:
Overhead cost = 30% × selling price × demand = 30% × $137/kWh × 15,202 kWh/year = 624,802.20 $/year = IDR 8,872,191,240/year.
Benefit of reducing overhead costs = 60% × IDR 8,872,191,240 = IDR 5,323,314,744 per year.
Based on the research of Patry et al. [114
], the production cost of lithium batteries is 65% of the selling price. Thus, the production cost can be calculated as follows:
Production cost = 65% × selling price x demand = 65% × $137/kWh × 15,202 kWh/year = 1,353,738.10 $/year = IDR 19,223,081,020/year.
Production cost reduction benefit = 60% × IDR 19,223,081,020/year = IDR 11,533,848,612/year.
Based on the calculation of the benefits that have been carried out, a recapitulation of the entire benefits component can be arranged as summarized in Table 11
From the EBIT value obtained, it is then deducted by the tax burden to obtain the EAT (Earnings After Tax) value or profit after tax. The income tax rate for corporate entities is 25% of taxable income (Law Number 36 of 2008). Thus, the EAT value can be calculated as follows:
Income Tax Expense = 25% × EBIT = 25% × IDR 35,488,764,960 = IDR 8,872,191,240.
EAT = EBIT—Income Tax Expense = IDR 35,488,764,960—IDR 8,872,191,240 = IDR 26,616,573,720.
Thus, the benefit value that will be considered in the calculation of the B/C ratio is the EAT with a value of IDR 26,616,573,720.
As shown in Figure 11
, the total benefit of implementing a standard battery swap is eight times greater than the total cost of increasing stakeholder readiness. Thus, standard implementation is feasible.
4.4. Model Applicability
A model for measuring the readiness of stakeholders in implementing the SB standard was successfully established, and this model resulted in the identification of the economic benefits of implementing a swap-battery standard for the battery industry. Thus, this measurement framework or model can be used to evaluate the readiness and ability of stakeholders to implement a standard so that, from the evaluation results, strategies and recommendations can be formulated to improve the existing conditions. The obtained model outputs can prove the research hypothesis. The first output is in the form of a readiness value for each criterion for each technology component (technoware, humanware, inforware, and orgaware), which shows the ability of stakeholders to meet the readiness criteria for implementing the standard swap-battery test system. In addition, the value of the technology contribution coefficient (TCC) represents the technological sophistication, technological readiness, and capability of the existing system being measured.
The output of the economic benefits assessment is the identification of the potential impacts leading to significant positive economic changes for the battery industry. In addition, the model also generated an output of an estimate of how significant the value of the change is so that the impact of implementing the standard could be quantified; then, the EBIT was obtained, which is the aggregation of all the operational indicators for each impact of the standard’s implementation. The EBIT is the value of the economic benefits of implementing the standard.
Furthermore, the developed model also provides an output in the form of an analysis of the feasibility of implementing the standard, expressed as the benefit–cost ratio (B/C ratio). The B/C ratio compares the economic benefits derived from implementing the standard with the overall expenditure required to improve or increase readiness. Based on the benefit–cost ratio analysis in the case study of this research, it is known that the SB standard’s implementation is feasible.
The developed measurement model also integrated the standard application approach, which considers aspects of technology adoption and economic benefits in a single unit simultaneously. Adopting technology in this study means that the existing system observed (EMSB stakeholders) adopts a new entity (standard) to achieve specific goals, namely, improving the quality and competitiveness of domestic products, protecting producers and consumers, and shortening the time to market for product innovation (battery swap). Thus, the model can be used as a benchmark to evaluate stakeholders’ ability and readiness to implement the SB standard.
4.5. Proposed Recommendations for EMSB Stakeholders
4.5.1. Recommendations for Standard Regulators
The analysis shows a high level of awareness of various parties, especially the battery and electric vehicle manufacturing industry, regarding the importance of implementing an SB standard. Therefore, it is essential for standards regulators to immediately promote these standards in Indonesia by adopting and implementing standards adapted to the country’s character, needs, and actual conditions. The adaptation needs to pay attention to domestic capabilities to adapt more quickly to the standards adopted and applied. Thus, consumer and producer protection can be realized more quickly, and the competitiveness of domestic products will be better. Therefore, standards regulators need to map the needs of battery-swap stakeholders and the ability of stakeholders to refer to the standard.
4.5.2. Recommendations for Product Testing and Certification Agencies
Based on the analysis of the TCC value, stakeholders in Indonesia are ready to implement an SB standard. However, the technoware component (technical tools) needs to be improved if one wishes to increase the value of the TCC or the readiness of stakeholders as a whole. The technoware readiness can be improved by improving product testing and certification service providers. In this case, it is necessary to look at the adequacy/availability of these institutions, infrastructure readiness, and capacity.
The analysis shows that few institutions are expected to provide services for the battery scope. To anticipate the surge in demand for swap-battery testing and certification services in the future, institutions that can perform this function need to expand their scope of testing. The expansion of the scope of testing will affect the provision of the necessary infrastructure and equipment. In addition, to support the commercialization of this swap-battery technology, these institutions need to increase their capacity to carry out tests for large capacities. These aspects can be achieved by investing in appropriate equipment and infrastructure procurement. In this study, the details of the infrastructure procurement based on the expansion of the required testing scope have been described. This research can be used as a reference or illustration for testing labs and product-certification bodies in Indonesia for improving infrastructure readiness. Thus, this research can provide practical benefits in an overview of the investment before the SB standard is implemented.
4.5.3. Recommendations for the Battery-Manufacturing Industry
The analysis shows that implementing the standard will positively impact the battery industry, evidenced by the considerable economic benefits obtained, especially through cost savings in most business chains. The application of standards will provide benefits if the industry can utilize them optimally as a driver of product excellence. As Indonesia’s lithium battery and electric vehicle businesses are still in the growth phase, the selling price offered is still likely to be expensive for consumers (the B2C business model). The business model will probably cause penetration in the market to take a long time. Therefore, in promoting product excellence, the business model can be shifted from B2C to B2B (business to business). For example, the battery industry supplies its battery-pack products to the electric motorcycle industry to be installed on the motorcycle body. In addition, another step that can be taken is to collaborate with other industry players through the B2B2C (business to business and business to consumer) business model scheme. For example, battery manufacturers supply battery-pack products to the electric motorcycle industry to provide battery-exchange stations for consumers.
Product certification with standard labels is one of the drivers of product excellence. In the future, if the battery-swap standard has been applied systematically and the battery industry has obtained product certification, product certification must be used optimally as a means of promotion to introduce product advantages and as a means of guaranteeing the quality of a product for consumers. A standard certificate marking that is clear and can be directly seen by customers will provide convenience and distinguish it from other products. Certification makes it easier to negotiate with counterparts or customers who have ISO certification because they will look for suppliers in the same class or that are familiar with the standard. Promotion and marketing teams will become more confident in the promotion process because they will have reliable weapons for global trade competition.
4.5.4. Recommendations for the Government
This research can be recommended to the government to be used as part of a road map to help to accelerate the battery-based electric vehicle program through a study of the application of battery-swap standards. In this case, the government needs to map the required test equipment, map the industrial production capacity, and test the infrastructure capacity. To expedite and simplify the application of standards, the government needs to coordinate with various testing labs and certification bodies that have been identified, battery and electric vehicle manufacturing industries, standard regulators, and consumers. The coordination is necessary to develop programs and strategic plans that are more comprehensive and accurate so that all the parties are not burdened by the implementation of this standard and can receive positive impacts from the implementation of the standard.