Web3 Governance in Electric Vehicle Battery Supply Chains: Evidence from Indonesia

Abstract

This study synthesizes Web3-based governance strategies in closed supply chains for electric vehicle batteries in Indonesia, focusing on reducing environmental impacts and improving resource efficiency. It includes a theoretical framework and case studies to address the overall issues in empirical validation and contextual adaptation. This paper aims to expand the governance framework, compare digital product passport implementations, identify incentive mechanisms including CSR integration, quantify regulatory models, and analyze practical case studies. An integrated analysis of multidisciplinary literature, using theoretical modeling, game theory, and empirical case studies, reveals that blockchain-based digital product passports improve transparency and lifecycle traceability but face challenges in large-scale implementation and data standardization. Incentive mechanisms based on game-theoretic frameworks and CSR promote resource efficiency, although empirical evidence in Indonesia remains limited and its social dimensions remain underexplored. A comparative regulatory analysis highlights the relevance of EU policies as a benchmark while also highlighting regulatory gaps and enforcement challenges in Indonesia. The case studies demonstrate the feasibility of Web3 technologies in improving environmental outcomes and operational efficiency, but scalability and stakeholder coordination require further investigation. These findings highlight the need for an integrated, multi-stakeholder governance model that bridges theoretical innovation with practical implementation in Indonesia's unique socio-regulatory context. This study informs future research and policy development to optimize sustainable battery supply chains through digital governance and circular-economy principles.