The Ministry of Industry (Kemenperin) continues to innovate to reduce the price of electric cars marketed in Indonesia. This is done so that people can easily buy electric cars.
One of the latest strategic steps taken is to increase local content so that production costs can be cheaper.
The strategic step taken by the Ministry of Industry is to publish a Road Map for the Development of Battery-Based Electric Vehicles. Attracting investors to produce batteries is considered the right way to reduce the burden of production costs.
“This road map outlines key steps in developing vital components such as batteries, electric motors and converters, in an effort to create more efficient electric vehicles,” said Minister of Industry Agus Gumiwang Kartasasmita, quoted from the official website of the Ministry of Industry.
It is reported that global demand for electric vehicles is estimated to reach 55 million units by 2024. More and more people are using electric vehicles for daily mobility, thereby encouraging growth in demand for lithium batteries.
“The Ministry of Industry has created a road map for battery development in this field, including electric vehicle batteries and others. “One of the things we want to achieve by 2030 is electric vehicles that have high efficiency and local content of around 80 percent,” said Agus.
To achieve this target, the government has established progressive policies, including providing fiscal stimulus and incentives. Apart from that, encouraging the use of electric vehicles as operational vehicles within the central and regional governments.
The Ministry of Industry is also collaborating with the Indonesia Battery Corporation (IBC), which produces electric vehicle batteries. This is a State-Owned Enterprise (BUMN) company that plays an important role in the Battery Electric Vehicle (BEV) and EV ecosystem in Indonesia.
Currently there are around 50 companies developing EVs in Indonesia, with total investment reaching more than USD 200 million or around IDR 3 trillion. The government has set a target of one million four-wheeled electric vehicle users by 2035.
In addition, it is targeted that 12 million units of two or three electric vehicles will be in operation by 2025. When compared, this is equivalent to saving 18.86 million barrels of fuel and reducing 6.9 million tons of CO2.
“The government is optimistic that this target can be achieved. “We also welcome industries that are interested in taking advantage of the incentives available in developing EV vehicles in Indonesia,” said Minister of Industry Agus.
