Jakarta (Indonesia Window) – One of the reasons Indonesia encourages the use of battery-based electric vehicles is because the government is also trying to develop a large-scale battery manufacturing industry in the country, a senior minister has said.

The battery manufacturing industry would utilize Indonesia's mineral resources which have been forbidden for exports to optimize added value in the country, Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan at a meeting on Indonesia's energy outlook 2022 in Jakarta on Feb. 24.

Besides being utilized for vehicles, the battery can also be used to streamline the operation of power plants in support of the integration of new and renewable energy into the power grid.

According to him, the scale of battery utilization for electric cars is more or less the same as that used for battery-based electric motorcycles.

He further said that the government targets the production of vehicle batteries to reach 600,000 units for four-wheeled vehicles and 2.45 million units for two-wheeled vehicles by 2030.

The minister noted that the battery production target is to offset the number of electric vehicles in the next nine years which are projected to reach 2 million cars and 13 million motorcycles.

"We also position Indonesia as a country that participates in reducing greenhouse gas emissions to reduce the earth's temperature to 1.5 degrees Celsius as aspired in the Paris Agreement," Pandjaitan added.

In support of the government’s effort to accelerate use of electric vehicles, State-owned Enterprises Minister Erick Thohir has collaborated with a number state-owned companies.

The collaboration on the development of the electric vehicle ecosystem that had been launched by President Joko Widodo was a form of his ministry's commitment to the development of new and renewable energy, the minister was quoted by Antara news agency as saying in Jakarta on Feb. 23.

Erick Thohir hoped that the collaboration can support the acceleration of the development of the electric vehicle ecosystem in Indonesia.

President Joko Widodo has previously appreciated the steps taken by companies from upstream to downstream to start the development of an electric vehicle ecosystem in Indonesia in order to achieve the zero emission target by 2060.

The president hoped that through the development of the electric vehicle ecosystem from upstream to downstream, Indonesia can become a producer of electric vehicles.

The Ministry of Industry has appreciated state-owned enterprises and private companies that work together to accelerate the development of an integrated electric vehicle ecosystem in Indonesia.

Indonesia has declared its readiness to enter the era of electric vehicles as directed by President Joko Widodo, Industry Minister Agus Gumiwang Kartasasmita stated in Jakarta on Feb. 23.

The collaboration was realized by Electrum as a joint venture company between Gojek (two-wheeled ride-hailing services) and TBS Energi Utama (a company running in electricity, mining and plantation businesses), together with state-owned oil and gas company Pertamina among other private companies.

The Ministry of Industry fully supports the development of the electric vehicle ecosystem from upstream to downstream, Kartasasmita said, in the hope that Indonesia becomes a country that is able to become a producer of electric vehicles with global competitiveness.

In the national automotive industry roadmap, the ministry sets 20 percent of the use of electric battery-based vehicles by 2025, in line with the automotive industry's efforts to continue to improve efficiency for types of Internal Combustion Engine (ICE), Hybrid, and Plug-in Hybrid technologies.

Meanwhile, Pertamina is committed to supporting the acceleration of the electric vehicle ecosystem through an inclusive collaboration scheme to achieve Indonesia's zero emission target by 2060.

Pertamina’s President Director Nicke Widyawati said that she has collaborated with a number of companies including the Indonesian Battery Company (IBC) to help accelerate the integrated and most complete electric vehicle ecosystem in Indonesia.

Widyawati explained that the development of the electric vehicle ecosystem must be integrated in a value chain, and Pertamina is committed to achieving the targets set by the government.

Author: Indonesia Window