Indonesia Ready to Become Key Player in EV Supply Chains

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 3 Juli 2024
Category: News
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The Inauguration of South Korean Battery and Electric Vehicle Ecosystem in Indonesia at PT Hyundai LG Indonesia (HLI) Green Power, Karawang regency, West Java province, Wednesday (07/03). (Photo by: Oji/PR)

Indonesia is ready to become the key player in the global Battery Electric Vehicle (BEV) supply chain by utilizing its abundant natural resources and investing in cutting-edge technology.

This statement was made by Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan during the inauguration of the South Korean Battery and Electric Vehicle Ecosystem in Indonesia by President Joko “Jokowi” Widodo on Wednesday (07/03) at PT Hyundai LG Indonesia (HLI) Green Power in Karawang, West Java province.

Luhut said that this inauguration shows Indonesia’s commitment to innovation, environmental management, job creation, and economic growth.

“Today’s event marks an important milestone in Indonesia’s journey towards sustainable development and technological advancement by inaugurating lithium battery and electric vehicle ecosystem,” said Luhut.

He reported that Indonesia has set a target to produce 600,000 BEVs by 2030.

“Thus, the production of 50,000 units of the KONA Electric this year will significantly increase Indonesia’s production capacity,” he added.

The production, he continued, is estimated to reduce Co2 emission up to around 160,000 tons per year, cut fuel imports up to 45 million liters per year, and save fuel subsidies to approximately Rp131 billion per year. The local contents used will also be increased significantly, he added.

“By using battery from LG, the local contents value in the production of Battery Electric Vehicles by KONA Electric which was initially 40 percent will increase to 80 percent. This is a good step to boost added value from domestic industry,” he said, adding that global demand for electric vehicles is growing with lithium battery as the core of this transformation.

“With the integrated ecosystem involving international stakeholders, this strategic measure will not only boost our economy, but also create thousands of jobs, drive innovation, and develop skills among our workforce,” he remarked. (FID/DNS) (EST/RA/LW)

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