Synergy between State owned and mining companies is urgently needed

Indonesia is considered to be a major producer of battery components and electric vehicles in Southeast Asia.In the future,electric vehicles(EVs) will dominate the market for transportation modes.

“Indonesia is expected to become a major player for battery manufacturers and EV producers in Southeast Asia and not only as an extension of the market,” said Member of the National Energy Council (DEN) Satya Widya Yudha in a virtual discussion, Wednesday (10/3).

According to Satya, the battery is one of the most important components in EV development.Indonesia, he continued, could become a major player in electric vehicle batteries because it has quite large reserves of nickel and cobalt sulfate as raw material for batteries.

However, he believes that intensive cooperation from BUMN and mining companies is needed to make this happen.

Satya added that EV is very linear with the Indonesian government’s policy regarding the Ratification of the Paris Agreement, which is to reduce carbon emissions by 29 percent and 41 percent with international assistance until 2030. It is also linear with the Sustainable Development Goals (SDGs), especially point number seven.

According to him, Indonesia is one of the largest two-wheeled vehicle users that produces a lot of carbon emissions, so the existence of electric vehicles is one of the solutions to overcome these carbon emissions.

Private Roles

By 2025, Indonesia targets to be able to produce 2.1 million electric motorbikes.The role of the private sector in Indonesia, he continued, is also important in accelerating the development of EVs.

Satya added that one of the obstacles in EV development is the price.Most two-wheeled vehicle users belong to the middle to lower economic class, so it is quite difficult to buy an electric motorbike, which is relatively expensive.

Therefore, according to him, it is necessary to have policies that can make prices more competitive, for example by providing fiscal and non-fiscal incentives.

Satya also said that collaboration and coordination from the private sector and the government in the Southeast Asia region are important in an effort to accelerate the development of EVs.