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Sep 25, 2024

Indonesia's Bold Ambitions in the Electric Vehicle Market

By Alsina Betha

photo resources:

http://surl.li/fdapeq


Indonesia plans to produce 600,000 EV batteries by 2030, reinforcing its commitment to carbon reduction and a greener economy.

With the world increasingly focused on sustainable transportation, Indonesia is positioning itself as a key player in the electric vehicle (EV) market. Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, recently announced an ambitious goal: to produce 600,000 electric vehicle batteries by 2030. This initiative reflects Indonesia's aspirations and is a crucial step in the country's broader commitment to reducing carbon emissions and fostering a greener economy.


The Ministry of Energy aims to have 2 million electric vehicles and 13 million electric motorcycles on Indonesian roads by 2030. Achieving these targets will require substantial investments in infrastructure, including charging stations and maintenance facilities, to create a comprehensive EV ecosystem. During the Periklindo Electric Vehicle Conference 2024 in Badung, Bali, on 12 September, the Electric Vehicle Industry Association (Periklindo) announced plans to establish the Electric Vehicle Centre of Indonesia, starting in Jakarta and expanding to major cities such as Semarang, Surabaya, Batam, Makassar, Medan, and Denpasar. This center will serve as a hub for education and innovation, showcasing the latest technologies and providing essential resources for consumers and industry stakeholders alike.


At the September 10 forum organized by Mekari, representatives from PLN and Hyundai discussed how EVs can enhance the use of renewable energy. Rudiana Nurhadian, Vice President of Product and Sales at PLN, emphasized that while the government promotes electric vehicles through subsidies, a significant challenge remains: insufficient charging infrastructure. He stated, "To address this issue, we need cooperation from all parties."


The Electric Vehicle Centre will feature interactive exhibitions and workshops focused on battery technology and environmental benefits. Moeldoko highlighted that this initiative reflects Indonesia's rapid growth in the EV sector and is a proactive response to government policies promoting electric mobility. Establishing these centers is expected to create thousands of jobs and stimulate local economies.


Rudiana Nurhadian also stressed the importance of collaboration to integrate batteries from various brands. Plans are underway to develop supporting facilities, including battery equipment and charging stations. Indonesia's state power company, PLN, is welcoming investments from Taiwan and other countries. Companies like Gogoro and Acer are positioned to play crucial roles; Gogoro's battery-swapping technology could significantly enhance Indonesia's charging infrastructure, while Acer could provide smart EV solutions.


Fransiscus Soerjopranoto, Hyundai's Indonesia director, emphasized the need for an ecosystem that supports mobile charging. Hyundai is working to establish a complete EV supply chain in Indonesia, with a new factory dedicated to producing electric vehicle batteries. To further bolster the EV industry, the Indonesian government has implemented a series of regulations and incentives, including reducing the value-added tax (VAT) for electric cars and buses to just 1% and offering a 0% luxury tax for eligible electric vehicles. These measures significantly lower costs, making electric vehicles more accessible and potentially reducing transportation emissions by up to 30%.


As Indonesia advances its electric vehicle ecosystem, the synergy between Indonesian ambitions and Taiwanese innovation could be a game-changer. This collaboration promises not only to elevate the EV industry but also to contribute significantly to Indonesia's goal of achieving net-zero carbon emissions by 2030. With continued investment and strategic partnerships, Indonesia is poised to emerge as a global hub for electric vehicle manufacturing in the coming years.



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