G20 Presidency, Promotion Event for Indonesia to Become a Major Player in the Electric Vehicle Industry

Jakarta, InfoPublik - Many believe Indonesia could be a top-tier player in the global electric vehicle industry due to the abundance of nickel, the main component of electric vehicle batteries, in the country.

Executive Director of Energy Watch, Mamit Setiawan, stated it when contacted on Wednesday (3/9) in Jakarta.

“To achieve it, we must have support from the international community as they are committed to assisting Indonesia in running the transition process as quickly as possible. Without international help, I think it would be impossible because there is no funding," he said.

He also does not deny that the transition to EBT use still has a lot of homework. However, through the 2022 G20 Presidency forum, Indonesia can push for a commitment to accelerate the energy transition through progressive policies.

"We have a fairly large source of energy, especially renewable energy, which is very large. We can optimize it," he said.

Mamit explained that currently, Indonesia still relies on PLTU around 65-70 percent as its energy source. "We should gather thoughts about the EBT use from now or at least reduce our dependence on PLTU. It will cost quite a bit," he said.

Therefore, Mamit said that the 2022 G20 Indonesia Presidency could be a momentum to get funding support to facilitate plans for the use of EBT. "I think why we should be optimistic as the government has massive policies related to EBT (green energy). The government is currently discussing the EBT bill. It will certainly provide legal certainty for investors to invest in EBT in Indonesia," he said.

The government and the National Energy Council (DEN) from stakeholders are accelerating the achievement of the national mix target by 2025. The national update consists of 23 percent NRE, 22 percent natural gas, 25 percent oil, and 30 percent coal.

Meanwhile, in 2020, Indonesia has achieved the new renewable energy mix by 11.20 percent, natural gas by 19.16 percent, oil by 31.60 percent, and coal by 38.04 percent.

Previously, the Ministry of Industry had also stated that they were preparing a strategy to become a major player in the global electric vehicle (EV) industry. They set a roadmap for EV development in Indonesia as stated in the Regulation of the Minister of Industry Number 27 of 2020 concerning Technical Specifications, Roadmap EV, and Local Content Level Calculation.

The government also targets to develop the main EV component industry, starting from batteries, electric motors, and inverters.

The demand for the EV is estimated to reach 55 million units in 2040. It contributed to the need for the EV's main components.

Photo: Antara/Visitors view the process of charging electric cars at the Public Electric Vehicle Charging Station (SPKLU) at the PT PLN (Persero) UP3 Palu office in Palu, Central Sulawesi, Wednesday (9/3/2022). PT PLN (Persero) established and inaugurated the operation of SPKLU in the area to ensure the battery charging needs of electric vehicle users. BETWEEN PHOTOS/Mohamad Hamzah/wsj.

Author: Taofiq Rauf

Editor: Untung S

Translator: Wilda Stiana