12-7-2023 (JAKARTA) Indonesia has the potential to become a prominent hub for electric vehicles (EVs), as highlighted by Trade Minister Zulkifli Hasan, due to the country’s abundant reserves of raw materials used in EV batteries.
The Indonesian government has been proactive in attracting investments and encouraging the establishment of EV manufacturing facilities in the country by emphasizing its vast natural and human resources.
“We have a significant population and ample raw materials for batteries. We hope that many factories will be established here, making Indonesia a center for EVs and the green economy,” Hasan stated during his visit to an automotive factory in Bekasi District, West Java, on Tuesday.
The government’s commitment to positioning Indonesia as an EV hub is demonstrated through initiatives such as the implementation of a downstreaming policy, which has led to the cessation of nickel ore exports.
According to the minister, the government aims to attract EV industry players to establish their factories in Indonesia, thereby eliminating the need to export nickel in its raw form.
“President Joko Widodo has made the decision to ban nickel ore exports, despite concerns raised by European countries. This policy is intended to generate greater benefits by selling nickel in the form of batteries, a product with significantly higher value,” Hasan affirmed.
Hence, Indonesia is actively working to leverage its abundant resources and maximize its potential to become a prominent center for EVs.
However, Minister Hasan acknowledged that Indonesia currently faces a shortage of other mineral resources essential for EV production, such as lithium and granite. In light of this, he emphasized the importance of collaborating with Australia to achieve the country’s EV objectives.
“We have nickel, and Australia has lithium. It would be beneficial for us to collaborate, so we are exploring opportunities for cooperation with Australia. Our sincere hope is that Indonesia can establish a conducive ecosystem for the green economy and EVs,” Hasan explained.
