Indonesia bets big on electric vehicles but has a long way to go

[Indos]

Indonesia bets big on electric vehicles but has a long way to go​

Indonesia aspires to be a major player in the electric vehicle space, but despite early gains, there is much more work required for the country to achieve its ambitious target of having 2.5 million EV users by 2025

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Article16 November 2022

Indonesia bets big on electric vehicles but has a long way to go​

Author
Nicholas Mapa

Indonesia aspires to be a major player in the electric vehicle space, but despite early gains, there is much more work required for the country to achieve its ambitious target of having 2.5 million EV users by 2025
In this article

• Betting big on EV
• EV adoption should have a positive impact on the growth outlook
• Creating the EV value chain in Indonesia
• Recent trends: improvement in 2022 but still some way to go
• Growth to get a boost but the near-term impact could be limited
• Steady gain for mining and quarrying sector on increased demand for minerals
• Efficiency key to delivering lower emissions?
• EV adoption can still lower emissions despite capacity constraints
• Several challenges to EV adoption
• Fuel subsidy another hurdle to EV adoption
• Conclusion: Great start so far but much ground to cover

A pair of young people test drive an electric motorcycle at the Indonesia International Hybrid Motor Show

Betting big on EV​

Indonesia is preparing its economy to be a major player in the electric vehicle (EV) market. EVs refer to vehicles that are partially (plug-in hybrid EVs) or fully powered by an electric battery (full electric EVs). In Indonesia, any vehicle that is powered by a battery, partially or fully, is considered to be an EV.

The most obvious motivation for this shift to EVs is the domestic availability of raw materials used to produce the most important component of EVs: the battery pack. Indonesia is home to the highest nickel reserves in the world, roughly 22% of the total, while also having access to cobalt (which extends EV battery life) and bauxite (used in aluminium production, which is also important for EV production). Having access to several components for EV battery production ensures a stable source of raw materials which could help lower costs.

Secondly, preparing Indonesia to be a major regional EV player goes along with President Joko “Jokowi” Widodo's directive to decrease reliance on raw material exports while shifting to higher value-added goods exports. Indonesia banned nickel ore exports in January 2020 while developing raw material smelting capacity, EV battery production, and now actual EV production. PT Hyundai Motors Indonesia rolled out its first domestically-produced EV in April 2022.

Developing Indonesia’s EV production capability would help bolster regional exports should neighbouring economies experience increased demand for EVs. Furthermore, Indonesia represents an important sales market for two, three and four-wheeled vehicles (121 million motorcycles and 22 million four-wheeled vehicles registered as of 2021).

Lastly, pushing for dominance in the EV market moves in line with Indonesia’s sustainability goals as the EV strategy also helps Indonesia chase net-zero emissions goals. Indonesia recently brought forward its emission reduction goal, now targeting 32% lower emissions (from 29%) by 2030. Emissions from passenger and commercial vehicles account for 19.2% of the total emissions generated by road vehicles and an aggressive shift to EV acceptance and usage would help Indonesia lower overall emissions, given EVs do not generate emissions like standard internal combustion engine (ICE) powered vehicles.

Global nickel reserves per country​

EV adoption should have a positive impact on the growth outlook​

Indonesia is the second-largest vehicle producer in ASEAN behind only Thailand. Year-to-date, Indonesia has produced 920,376 units as of August compared to Thailand’s 1,225,776. Vehicle production in Indonesia slumped during the pandemic but has since recovered and is projected to grow this year by 8.4% year-on-year and 1% next year[1].

Meanwhile, in terms of vehicle sales, Indonesia is the largest market in ASEAN with 658,232 sales for the year followed by Thailand (589,863) and Malaysia (447,209). Sales also dipped due to Covid-19 but have bounced back and are projected to expand 8.7%YoY and 1.8%[2] in 2022 and 2023, respectively. Thus, Indonesia represents a key market for vehicle sales while also being a major player in vehicle production in the ASEAN region.

Increased domestic production of EVs could bolster Indonesia’s GDP growth, contributing to manufacturing activity, exports and domestic vehicle sales. On top of this, increased economic activity for related EV industries (raw material harvesting, refining and EV battery production) and vehicle sales (marketing, vehicle repair) could also boost growth further.

Vehicle production in Indonesia accounts for roughly 8% of total manufacturing and a mere 1.7% of overall GDP, so it is by no means a major driver for economic growth just yet. Similarly, vehicle manufacturing accounts for only a small percentage of total exports (3.8%) given the limited market for Indonesia’s vehicle exports.

One reason for the relatively low percentage of vehicle exports to total exports would be that Indonesia’s vehicle production focuses on so-called multi-purpose vehicles designed specifically for emerging markets such as the Toyota Avanza and Mitsubishi Expander. Such vehicles tend to have safety and emissions standards that are not up to par with developed markets and could be a limiting factor in terms of export potential. The switch to EV production could change this dynamic as increased demand for EVs from developed markets would broaden Indonesia’s potential vehicle export market.
[1] IHS Markit, Autointelligence
[2] IHS Markit, Autointelligence

​

Indonesia is the largest market in terms of sales​

ASEAN production is dominated by Indonesia and Thailand​

Creating the EV value chain in Indonesia​

The national government has prioritised building the EV value chain while setting ambitious targets for EV production and usage. Indonesia aims to produce 600,000 EVs by 2030 and one million five years after, supported by its domestic supply of nickel, upgraded smelting infrastructure, and locally-produced EV batteries.

President Jokowi passed PR 55 in 2019 to develop Indonesia’s EV battery sector, and in 2021 the Indonesia Battery Corporation (IBC) was founded. Although comprised of state-owned enterprises, IBC partnered with foreign investors to develop technology and drive domestic production of EV batteries. Several other regulations were passed that covered tax breaks for EV and EV parts imports (Regulation No. 73/2019) while also setting standards for the EV infrastructure, such as guidelines on charging stations (Regulation 13/2020).

In 2022, Jokowi announced that government agencies and state firms should procure EVs for their fleet (Presidential Instruction No. 7 of 2022) to increase the usage and acceptance of such vehicles. More recently, Jokowi called for subsidies on EV purchases for households on top of existing tax perks and non-tax incentives such as exemption from traffic restrictions. These directives show Indonesia’s resolve to push for EV adoption and acceptance although not all directives have translated into actual legislation just yet.

Recent trends: improvement in 2022 but still some way to go​

Indonesia’s EV vehicle sales improved in 2022, more than doubling 2021 totals by May 2022. In 2022, year-to-date sales hit 1,587 compared to 693 EVs for the same period in 2021. Despite the substantial YoY growth, however, EV sales account for a mere 0.6% of vehicle sales for the same period (267,030). Furthermore, the number of EVs is still minuscule at 4,904 which is a mere 0.2% of total registered vehicles.

Growth to get a boost but the near-term impact could be limited​

We previously identified sectors that would likely benefit from the continued growth of the EV value chain in Indonesia. The sustained growth of the domestic EV industry could bolster GDP activity in the following sectors: mining and quarrying (nickel mining), manufacturing of transport equipment (EV production), wholesale and retail trade of motor vehicles (EV sales), and the export of road vehicles (EV exports).

In the near term, however, we believe that the initial boost to GDP will be delivered by the increased mining and quarrying activity related to EV development. Given that Indonesia is still transitioning from ICE to EV, we expect that any gains from EV production would be offset by a decrease in current ICE vehicle production. The same situation would apply to motor vehicle sales as households simply shift purchases away from ICE vehicles to EV. Meanwhile, the higher value-added contribution of EVs to GDP may be offset by increased subsidy costs incurred by the government. Lastly, we believe that the projected gains for the export sector will only be realised once Indonesia meets EV sales and production targets, as most if not all locally produced EVs will likely be directed to local consumption.

Based on these assumptions, we can expect the initial impact of the shift to EV to be relatively muted during the period of transition to EV acceptance and usage with benefits delivered mainly by the increase in mining activity.

Indonesia’s mining and quarrying sector to gain from EV shift​

Steady gain for mining and quarrying sector on increased demand for minerals​

Indonesia’s mining and quarrying sector posted average growth of 1.6%YoY from 2010 to 2019. In 2020, President Jokowi implemented an export ban on nickel to ensure a stable supply of the mineral for domestic smelting production, leading to a contraction in the mining sector for that year. Base effects and the reopening of the economy post-Covid-related lockdowns may have helped bloat 2021 growth. For the first half of 2022, the sector expanded by an average of 3.9% likely driven by the increased demand for EV batteries as Indonesia opened its first EV manufacturing plant.

We can assume a 3.9%YoY growth baseline scenario for the mining sector as demand for raw materials such as nickel, bauxite and cobalt rises due to EV requirements. The mining sector is roughly 7% of total GDP and our base case scenario would deliver at least 0.17 additional percentage points to growth each year through to 2025. As EV usage increases and approaches usage targets, Indonesia may eventually see increased gains from trade as a part of domestic EV production shifts to satisfy the demand for EV exports.

Efficiency key to delivering lower emissions?​

We’ve highlighted the possible benefits of the shift to EV for GDP growth, but we would also like to show how Indonesia’s EV adoption could help the country achieve current net zero emissions goals. An EV is estimated to be about three times more efficient in energy utilisation compared to a conventional ICE vehicle. Therefore, in theory, EVs can lower emissions by making more efficient use of the power generated by power plants. Of course, emissions can be lowered further by switching to renewable sources of energy given Indonesia currently sources its power mainly from coal. Indonesia’s Ministry of Industry estimates that the country can reduce CO2 emissions by 1.4 MT should it hit production and EV usage targets by 2030.

For this discussion, we focus solely on the efficiency gains by switching to EVs as this would translate to lower energy requirements (for the same number of vehicles) to lower emissions. Furthermore, for this exercise we assume that Indonesia will shift to full battery electric passenger vehicles (BEVs) as these vehicles have zero emissions as opposed to hybrid and ICE vehicles.

The Hyundai Cikarang vehicle plant produces the Ioniq5, a BEV that does not require fuel and can be assumed to be three times more efficient than a comparable ICE vehicle. The Ioniq5 BEV is currently available for purchase in Indonesia.

Assuming that road vehicle registration maintains its average increase of 8.6% (which should account for new sales and vehicle retirement), we estimate that full-battery EVs need to comprise 50% of the total number of registered vehicles by 2030 to achieve Indonesia’s current emissions target from transportation. This exercise shows us that the ambitious usage targets set by Indonesia may be difficult to achieve given the current low base (1,095 units) and the projected target of roughly seven million vehicles in a span of eight years. The challenge to achieve this target is further compounded by the current capacity of EV production which may not be able to produce the required number of EVs per year.

​

Best case scenario would be ideal but limited production capacity suggests this goal may be out of reach​

EV adoption can still lower emissions despite capacity constraints​

Given the production constraints shown in the previous exercise, we plot out a more plausible path for EV adoption in Indonesia. Assuming that the existing Hyundai Cikarang plant continues to expand EV production towards its announced capacity of 250,000 units per year, we can demonstrate a scenario whereby EVs comprise 3% of total cars in Indonesia (roughly one million registered EVs) by 2030. Based on this trajectory, Indonesia would be able to reduce emissions by 1.9% compared to the base case scenario had only ICE vehicles been sold in the market.

Although the projected improvement in emissions would still be below Indonesia’s existing net zero emissions targets, such a scenario (one million EVs by 2030) would yield a positive result by lowering emissions by roughly 1.9%.

Based on existing capacity, Indonesia can still hope to have 1 million EVs by 2030​

Several challenges to EV adoption​

Despite the directive to shift to EV, we believe that government targets remain ambitious given challenges to adoption and production capacity. The National Energy Grand Strategy set a target of 2.5 million registered EVs and electric motorbikes by 2025. Indonesia’s current EV number is still very low with only 1,095 registered EVs compared to the total, which means EV usage will need to increase significantly over a span of only three years.

Prohibitive costs would be another challenge as EVs remain more expensive than ICE vehicles, even after existing tax breaks, lowering the appeal to switch to EVs. The cost to acquire an EV is said to be roughly four times that of an ICE vehicle even after current incentives. The lack of charging infrastructure could also be a limiting factor for EV adoption, with only 332 charging stations in Indonesia at the moment.

On top of challenges related to cost and lack of infrastructure, EV adoption is also constrained by existing production capacity. The lone EV vehicle plant in the country is the Hyundai Cikarang plant which has a projected 250,000 capacity per year. Even if Hyundai is successful in attaining its planned 250,000 vehicle production capacity per year, this would still fall short of providing enough EVs to achieve the target of 2.5 million EVs by 2025.

Surging global commodity prices have also driven up the cost of computer chips as well as elements like lithium and graphite, all of which are needed for EV production. The rising cost of EV components suggests that EV production costs will rise and in turn keep the price disparity between EVs and ICE wide. Thus, Indonesia may need to increase subsidies even more to boost EV sales.

Fuel subsidy another hurdle to EV adoption​

One additional hurdle to EV adoption is Indonesia’s subsidised fuel programme. This acts as an additional deterrent to EV adoption as households will see less incentive to switch to EVs even as global crude oil prices remain high.

Indonesia's current EV goals​

Conclusion: Great start so far but much ground to cover​

Indonesia’s decision to prepare itself to be a major player in the EV market can lead to several benefits such as faster economic growth and lower emissions. The push for EV also moves in line with President Jokowi’s goal to shift away from low-value-added exports to higher-value-added finished export products. And although we believe that several sectors will benefit from the shift to EVs, we expect the mining sector to benefit most during the initial stages of EV adoption.

Indonesia has had some early success in EV adoption with sales picking up considerably in 2022, overtaking 2021’s full-year sales total in the first five months of this year. However, despite these gains, EVs are still dwarfed by ICE vehicles in terms of annual sales and actual usage.

To boost EV sales, Indonesia’s national government may consider additional purchase subsidies on top of existing incentives to entice households to shift to EVs. Prohibitive acquisition costs remain one of the main deterrents to EV purchases. Additionally, Indonesia may need to gradually phase out its fuel subsidy programme as it acts as a disincentive to EV adoption.

Switching to EVs may also help Indonesia lower emissions from vehicles, in line with its net-zero objectives. Production capacity, however, may limit the ability to shift dramatically to EVs, although any increase in EV usage would still result in lower emissions compared to the ICE alternative. To lower emissions further, Indonesia may also intensify efforts to shift production to renewable sources given its current dependence on coal as EVs still require energy produced by power plants despite not generating emissions.

Despite the challenges posed by production capacity and reluctance to shift to EVs, the national government appears determined to get the programme off the ground with several presidential decrees and legislation to help boost the local EV industry. A sustained push to ramp up production capacity and lower EV acquisition costs will help Indonesia make headway in its EV usage goals. Until these constraints are addressed, however, we recognise that much more work is needed for Indonesia to successfully make the shift to EV and achieve its ambitious target of 2.5 million EV users by 2025.

Indonesia bets big on electric vehicles but has a long way to go

Indonesia aspires to be a major player in the electric vehicle space, but despite early gains, there is much more work required for the country to achieve…

think.ing.com

 

[Indos]

The writer focuses on EV cars, but what Indonesian government mean of 2.5 million EV target to achieve in 2025 is not limited on cars only, but rather on both cars and motorcycles.

Indonesia local industry has already produced around 1 million of electric motorcycle as we are speaking.

Despite the article put motorcycle as the photo ( I am sure it is design graphic man who put it without the knowledge of the writer), all of the data provided by the Philippino analyst is all data on passenger vehicles (cars). Despite so his analys is good in relation to EV car sales and production in Indonesia.

35 Pabrik Otomotif RI Siap Produksi Motor Listrik, Target 2 Juta Unit - Industri Katadata.co.id

Pemerintah menetapkan aturan agar motor listrik yang digunakan kendaraan dinas wajib memenuhi batas tingkat kandungan dalam negeri atau TKDN.

katadata.co.id

 

[Indos]

Indonesian President car is now electric, as well as the escorted cars. All are Hyundai made cars.

During event in Bali, G20 summit 2022

 

[Indos]

Indonesia's Indika, Taiwan's Foxconn Mull EV Partnership With Thai Firm​

By Reuters
By Stefanno Sulaiman

Nov. 16, 2022, at 1:46 a.m.


JAKARTA (Reuters) - Coal miner PT Indika Energy and Taiwan-based Foxconn, which are partnering to make electric vehicles in Indonesia, are considering bringing in a Thai firm as a third partner, Indika's top executive told Reuters on Wednesday.

Arsjad Rasjid, President Director of Indonesian miner Indika, declined to name the Thai company nor any target for the completion of the partnership due to ongoing negotiations, but said the three could invest in EV or EV battery production.

"We know the strongest automotive strongholds in ASEAN are Indonesia and Thailand ... instead of competing, why don't we complement," he said in a video interview with Reuters while at a gathering of G20 leaders.

ASEAN is the Association of Southeast Asian Nations bloc.

In September, Indika and Foxconn launched a $2 billion joint venture to make EVs, batteries and energy storage in Indonesia.

Arsjad said the venture would likely focus on manufacturing electric buses in its initial production and may later move to make electric trucks.

Foxconn, Apple's biggest iPhone maker, also has a $1 billion joint venture with Thai energy group PTT to produce battery EVs.

Foxconn did not immediately respond to request for comment by email.

Indika has recently acquired local metal firm PT Perkasa Investama Mineral, which has a bauxite mining business, to secure materials for battery production, Arsjad said, adding that it is looking to buy other bauxite or nickel mines.

Like many other energy companies, Indika wants to diversify its business to reduce exposure to coal - the most polluting fossil fuel - to reach a target of carbon neutrality by 2050.

Indika is one of the top coal miners in Indonesia, which is the world's biggest coal exporter.

Arsjad, who chairs the B20 meetings of business executives from G20 economies, said the businesses had recommended initiatives to leaders to accelerate the world's energy transition to renewables, including ways to balance the short- and long-term measures to expedite the phase-down of coal.

(Reporting by Stefanno Sulaiman; Editing by Gayatri Suroyo, Martin Petty)

https://www.usnews.com/news/technology/articles/2022-11-16/indonesias-indika-taiwans-foxconn-mull-ev-partnership-with-thai-firm

 

[Indos]

The electric bus factory of Indika and Foxcon is expected to be built in Batang Industrial complex, Central Java.

 

[Indos]

4 state owned universities have teamed up with state owned train producer, PT INKA, to make electric bus. The buses had been operated during G20 event in Bali.

PT INKA has already made battery powered tram last year.

 

[Indos]

Hyundai Motor Indonesia has produced electric car, Ionic5, in Indonesia

 

[Indos]

Electric tactical motor trail made by state owned defense electronic company, PT LEN Industri

 

[Indos]

4 state owned universities have teamed up with state owned train producer, PT INKA, to make electric bus. The buses had been operated during G20 event in Bali.

PT INKA has already made battery powered tram last year.

More information related to the bus, this is what is stated by Indonesia Finance Minister, Sri Mulyani Today :

Since 2018, @lpdp_ri has started funding research on the @univ_indonesia electric bus which is currently being used to support accommodation during the G20 Summit in Bali. The total allocation of the #UangKita APBN to fund this research is IDR30.45 billion.
In developing the electric bus, UI collaborated with @mobilanakbangsa and produced 5 main components of the electric bus, namely:
1. platform/chassis-body-interior
2. cooling/air conditioning system
3. battery management system/BMS
4. inverter
5. bus driving motor

In the future, it is hoped that this electric bus can use domestic battery products.
Apart from @univ_indonesia, @lpdp_ri is also collaborating with several other universities in the development of electric bus research, including @its_campus and @ugm.yogyakarta who collaborated with @pt_inka with funds from the program @kemdikbud.ri., as well as @itb1920 for buses medium class electricity, and with @uns.official for electric batteries. The five universities are incorporated in a research consortium.

 

[Indos]

China CTAL investment in Indonesia and its local partner, IBC (Indonesia Battery Corporation) is expected to reach 6 billion USD for EV ecosystem.

IBC is Indonesian state owned battery company that plans to invest from mining, refining, EV battery important components, EV battery, into EV cars/motorcyles. Aside from IBC investment, Indonesia government through its asset management (INA) is preparing 2 billion USD as EV fund.

MSN

 

[Indos]

https://twitter.com/x/status/1588087102935388162

https://twitter.com/x/status/1587818694935281665

 

[Indos]

Bakrie & Brothers (BNBR) Subsidiary Aims to Sell 200 Units of Electric Buses in 2023​

KONTAN.CO.ID - JAKARTA. PT Bakrie & Brothers Tbk (BNBR) through its subsidiary PT VKTR Teknologi Mobility (VKTR) targets the sale of electric buses to be even stronger next year.

Chief Executive Officer (CEO) of VKTR Mobility Technology, Gilarsi W Setijono revealed that his party expects sales of electric buses to reach 150 units to 200 units in 2023.

"Of course, this is the sale of electric buses not only for Transjakarta, but also in other markets," he explained to Kontan.co.id, Friday (18/11).

Currently, Gilarsi revealed that as many as 30 units of Transjakarta electric buses are currently operating, all made by VKTR.

Also Read: Toyota Officially Starts Hybrid Car Production in Indonesia

In mid-2022, VKTR is working with PT Transjakarta and Equimake Holdings Plc, a UK-based commercial vehicle electrification specialist toretrofit 3,000 diesel and CNG buses into electric buses.

Gilarsi explained that the collaboration to retrofit Transjakarta buses will run effectively in 2023. He revealed that this year Transjakarta will compile a budgeting to determine the number and type of buses to be converted first.

"The cost that Transjakarta has to spend to retrofit one bus is approximately Rp 2.5 billion. Meanwhile, if the new electric bus costs Idr 5 billion, "he said.

After the budgeting process is complete, in 2023 VKTR will make a prototype of the bus first. After Transjakarta agrees with the bus model, then the electric bus can be mass-produced in 2024.

Currently, VKTR already has manufacturing facilities that can produce new electric buses. The capacity of the plant is about 10 units of buses in one day, depending on the level of difficulty.

As for running the diesel to electric bus retrofit program, Gilarsi admitted, his party will prepare operational support equipment and capacity as needed.

"We are waiting for Transjakarta's readiness as well, it is also not wise if we have spent funds on equipment but the product is not ready. The regulation is also just finished," he explained.

Also Read: Interesting Prospects, Electric Bus Business Starts to Be Glimpsed

Meanwhile, to prepare these operational support equipment requires considerable funds. Although it has not been able to specify how much the nominal is, VKTR will rely on funds from the Company's internals and also loans from banks.

In addition to developing electric buses, VKTR is also preparing to sell electric trucks. Gilarsi revealed that his party is building a prototype of a new electric truck as well as retrofitting diesel to electric trucks.

The development of electric trucks will also take place in the next year as VKTR adjusts to the increasing demand for electric vehicles to support certain industrial operations.

"Later, the electric trucks that will be produced range from 1.5 tons, 4 tons, to 8 tons, vehicles whose capacity is widely used in the logistics and plantation sectors," he explained.

Not only buses and trucks, VKTR even plans to release electric motorcycles in the middle of next year.

MSN

 

[Indos]

Director General of Mineral and Coal ESDM Ensures that the Stainless Steel Industry in The Republic of Indonesia Will Be Limited​

Story from BUSINESS•23 minutes ago

The ground breaking of the Pomalaa Vale Indonesia Smelter project and Zhejiang Huayou Cobalt Co., Ltd, was attended by Coordinating Minister for Marves Luhut B Panjaitan, Sunday (27/11/2022). Photo: Fariza Rizky Ananda/coil© Provided by Coils

Director General of Minerals and Coal of the Ministry of Energy and Mineral Resources Ridwan Djamaluddin ensured that the stainless steel industry, which uses high-grade nickel raw materials (saprolite), will begin to be restricted in Indonesia.

Ridwan explained that this policy is in line with the boost of the electric vehicle industry ecosystem, where lithium batteries, one of which uses low-grade nickel raw materials (limonite).

The low-grade nickel must be processed at a mineral processing plant or smelter with High-pressure Acid Leaching (HPAL) technology. This type of smelter is still small when compared to smelters that process saprolite with Rotary Kiln Electric Furnace (RKEF) technology.

"So that we don't run out of stainless steel raw materials, so that our smelter is enough, we want to transfer it to another one that is more downstream and leads to batteries," Ridwan told reporters after the groundbreaking of the Pomalaa Project in Kolaka, Southeast Sulawesi, Sunday (27/11).

Ridwan said that the government considers the massive production of stainless steel carried out in Indonesia to be sufficient because it is considered ineffective for the production of lithium batteries.

"We consider stainless steel to be sufficient because if we continue to add more raw materials, we will not be long enough later. Meanwhile, we will go to the point now that the nickel is low grade for batteries," he explained.

Meanwhile, he did not elaborate on the roadmap or further policies of the stainless steel industry restrictions in Indonesia. He only ensured that in concept, the government would further boost nickel production for batteries.

"Conceptually from now on we've also thought so, enough with the smelter now it's pretty much so let it grow up first good, we're heading it to like for batteries," he said.

An online motorcycle taxi driver replaced his electric motor battery at the SPKLU of PLN Gambir Building, Jakarta, Wednesday (13/0/2022). Photo: Agha Yuninda/ANTARA FOTO© Provided by Coils

Previously, the Special Staff of the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Governance, Irwandy Arif, revealed that the step to limit the stainless steel industry had been further planned by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan.

"Mr. Luhut has spoken with the Minister of Energy and Mineral Resources and the Minister of Industry so that the direction of stainless steel that consumes high levels of nickel should be limited," he said at the Launching of the Manufacturing and Tourism Study Book, Friday (18/11).

On the other hand, President Joko Widodo (Jokowi) said, Indonesia is one of the largest nickel ore producing countries in the world. It doesn't stop there, Indonesia is also the second largest producer of stainless steel in the world.

"Currently, Indonesia is the number 2 largest stainless steel producing country in the world," said Jokowi during the ASEAN-US Special Summit with Business Leaders, Friday (13/5).

MSN

 

[Indos]

November 29, 2022
4:50 PM GMT+7Last Updated a day ago

Indonesia says lithium, anode plants are being built to support EV ambitions​

Reuters

JAKARTA, Nov 29 (Reuters) - Indonesia is building a lithium refinery and an anode material production facility to complement its nickel-based battery materials industry, an official said, as it aims to set itself up as a hub for making electric vehicles (EVs).

Investors are currently building a lithium hydroxide plant with 60,000 tonnes capacity in the heart of the nickel industry in Morowali, Septian Hario Seto, a Deputy Coordinating Minister for Maritime and Investment Affairs, told an industry conference on Tuesday.

An anode material plant with 80,000 tonnes capacity is set to start construction in January, he added.

Both materials are needed to make EV batteries.

"We are building an ecosystem, so we are not only producing nickel- and cobalt-based components alone," he said.

Indonesia has already started producing EV battery parts extracted from nickel, but other materials are also needed to produce EV batteries, Seto said.

Indonesia currently does not have its own lithium mine. He did not elaborate on how the lithium ore for the plant would be sourced.

The government has banned exports of unprocessed nickel to attract investment at home and secure material for domestic production of nickel metals and battery materials.

Reporting by Fransiska Nangoy, Bernadette Christina Munthe; Editing by Kanupriya Kapoor

Indonesia says lithium, anode plants are being built to support EV ambitions

Indonesia is building a lithium refinery and an anode material production facility to complement its nickel-based battery materials industry, an official said, as it aims to set itself up as a hub for making electric vehicles (EVs).

www.reuters.com

 

[Indos]

Electrifying RI’s two-wheelers to catch the world’s biggest opportunities​

Nicolas Meyer and Pandu Sjahrir (Boston Consulting Group)
(The Jakarta Post)

Jakarta ● Wed, December 7, 2022

The kind of growth we are about to see in the electric two-wheeler sector only comes along once in a generation. If investors and policymakers don’t catch the wave now, they will miss out on one of the world’s biggest opportunities.

There is no doubt that electric vehicles are the future for Indonesia’s automotive industry. Already, we are seeing widespread adoption, with battery-powered cars and motorbikes set to spread across the country at an unprecedented pace.

The current administration is taking our nation’s energy transition very seriously, which is encouraging. Electric vehicles are an important national priority for Indonesia, promoted in a presidential decree and other key national plans, with profound socioeconomic and environmental benefits for the nation.

Electrifying RI’s two-wheelers to catch the world’s biggest opportunities

The kind of growth we are about to see in the electric two-wheeler sector only comes along once in a generation. If investors and policymakers don’t catch the wave now, they will miss out on one of the world’s biggest opportunities.

www.thejakartapost.com