JAKARTA (Antara) – Indonesia’s success in maintaining economic resilience and growth and political stability amid a complex global economic environment has helped the country develop its electric vehicle (EV) industry, a cabinet member said.
The successful holding of peaceful general elections and a government transition process without significant chaos will be the perfect pace for EV companies to develop their businesses in Indonesia, said Deputy Trade Minister Jerry Sambuka.
In a statement released by his office on Sunday, Sambuka added that Indonesia was able to record a trade balance surplus of US$4.47 billion in March 2024. This surplus has been maintained for 47 consecutive months from May 2020.
He said the government has several strategic policies, including the Nickel Downstream Policy.
Sambuka noted that this policy has been able to increase added value in the economy, open job opportunities and strengthen Indonesia’s position in the global supply chain.
„The government is also pursuing the development of technology to reduce pollution and reduce dependence on fossil fuels. This is supported by Indonesia’s large natural nickel resources, making it a platform for EV production in Asia,” he continued.
Referring to the Bloomberg NEF assessment, Indonesia ranked 22nd among 30 countries that could increase investment attractiveness in the electric battery supply chain ecosystem. The assessment is based on several aspects including industry, innovation and infrastructure, he said.
„Availability of raw materials, battery production, downstream sector demand and environmental, social and governance policies are included in the assessment. Indonesia electric battery supply chain ecosystem is expected to attract investors immediately.” Deputy Minister said.
Currently, the government continues to promote energy transition initiatives to achieve the Nationally Determined Contribution (NDC). Indonesia has committed to raising its emissions reduction target from 29 percent to 31.89 percent without international assistance.
Sambuka also noted that energy transition initiatives are likely to allow investment opportunities worth US$3.5 trillion for Indonesia.
In addition, Indonesia is in the process of becoming a member of the Organization for Economic Co-operation and Development (OECD). As the largest economy in Southeast Asia, Indonesia’s OECD membership will increase the profile and importance of the OECD, he added.
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