Information Category: Government Information
Product Category: Electric Vehicles
News Date: 2020/11/09
Indonesia intends to adopt a circular model for its emerging electric vehicle (EV) industry and plans to partner with major companies from global manufacturers to produce EV batteries. Doddy Rahadi, head of the Industrial Research and Development Institute (BPPI) at the Ministry of Industry, said the government is accelerating the development of electric vehicles and has provided incentives to help the industry grow.
The Ministry of Industry is promoting the development of battery technology with a circular economy concept in response to the main challenge of electric vehicles, which is their battery life and the limited charging cycles that result in a large amount of lithium battery waste. Under the direction of President Jokowi J. Widodo, Indonesia's local automotive industry will begin producing electric vehicles in 2021-2022 in anticipation of exporting 200,000 electric vehicles by 2025. This figure represents about 20 percent of the total 1 million vehicles exported annually.
PT Mobil Anak Bangsa (MA8), a local electric vehicle manufacturer in Indonesia, has a production capacity of 1,200 electric buses per year, as well as 15 two- and three-wheeled electric vehicle manufacturers with a total production capacity of 877,000 vehicles per year, including Viar, Gesit, Selis Motor and MIGO brands.
Yucuanto Susetyo, director of Motor Indonesia, said the potential benefits of global manufacturers coming to Indonesia to invest in EV-related industries will be higher than the risks, which is the main reason for the major West Indian manufacturers to invest in Indonesia. With the major manufacturers investing in this industry and market, it is expected to improve the quality of human capital in the EV industry and increase Indonesia's competitiveness in the EV parts industry, but it is also necessary to consider the strategy of Indonesian brands in order to facilitate local brands to have a place in the future market.