Investment Minister Bahlil Lahadalia has said he is optimistic that the government will achieve its target of developing an electric car battery ecosystem in Indonesia, with the first production planned to start in early 2024.

“We have made several formulations (so) that the development of the (electric) car battery ecosystem continues to run, and it is planned that our production will begin in the first half of 2024 in the (factory) built by LG in Karawang,” he informed at the presidential palace here on Friday.

He made the statement after attending a limited meeting on the development of the electric vehicle (EV) ecosystem, which was led by President Joko Widodo.

“The second is the ecosystem from upstream to downstream between CATL (Contemporary Amperex Technology Co. Limited, a Chinese company) and LG in which the construction has started this year,” the minister said.

Earlier, CATL had teamed up with state-owned mining firm PT Aneka Tambang (Antam) and Indonesia Battery Corporation (IBC) to build a battery factory worth US$5.97 billion or Rp85.77 trillion in North Maluku.

CATL is the world’s largest electric car battery manufacturer with a market share of 32.6 percent in lithium-ion batteries.

CATL, Antam, and IBC will build projects covering the mining of nickel and battery materials, recycling, and establishment of electric car and electric motorcycle battery factories.

“This is a form of government concern in making arrangements for the development of products that are oriented towards green energy and green industry,” the minister said.

Lahadalia further said that the government is currently formulating the most appropriate and competitive facilities for investors to support the EV battery ecosystem in Indonesia.

The government has issued Presidential Regulation Number 55 of 2019 regarding the acceleration of the Battery Electric Vehicle (BEV) Program.

It has also devised a road map for the development of the BEV industry through the Industry Minister’s Regulation Number 27 of 2020 on technical specifications, EV road map, and the calculation of domestic component level (TKDN).

In terms of BEV production, the government is targeting to produce 600 thousand electric vehicles with four wheels or more and 2.45 million two-wheeled electric vehicles by 2030.

Meanwhile, the purchase of four-wheeled electric vehicles is targeted to reach 132,983 units and two-wheeled electric vehicles 398,530 units.