This is Indonesia’s Right Step in Facing the Era of Electric Vehicles

DAPURPACU – Indonesia is very likely to become a global player in the electric vehicle (EV) industry because it has integrated resource capabilities from upstream to downstream.

Indonesia is rich in nickel ore which is the raw material for making EV batteries. Therefore, PT Industri Battery Indonesia or Indonesia Battery Corporation (IBC) is collaborating with consortium partners namely LG Group from South Korea and Contemporary Amperex Technology Co. Ltd (CATL) from China.

According to UI economist Toto Pranoto, the global community has started to switch to these vehicles. Even Norway is targeting 100 percent EV by 2025.

He noted that global EV sales data rose 43% in 2020, with sales of up to 3.2 million units worldwide.

“The problem in Indonesia is how we can develop national manufacturing, so that it can encourage industries that produce attractive products for consumers and competitive prices with foreign products,” he said in the Salemba Discussion Forum held online by ILUNI UI, Saturday (20/11).

In addition, he continued, incentive support from the government is also important, regarding vehicle tax cuts, or non-material incentives such as the exception of odd-even numbers for EVs.

“With competitive prices and the support of other conveniences, it will make people’s interest to buy them better,” he said. According to him, the use of EVs has many benefits for the environment as well as the economy.

He explained the benefits for the environment, for example, only by converting 30% from BBM to EV, it can reduce fuel imports significantly, almost Rp. 2-3 billion a year.

“We must immediately switch to EVs and use batteries that we manufacture ourselves. Nationally produced batteries can last 8 years and can be recycled 80%,” he explained.

Meanwhile, Director of Hyundai, Tri Wahono continued, the public needs to be educated more about EVs so that there is no resistance, how the impact of using EVs on the environment and the national economy.

“This is because countries in Southeast Asia haven’t moved. So we have the opportunity to be pioneers, to become major players who have a strong supply chain from upstream to downstream,” said Tri.

At the same time, racer Fitra Eri agrees, the current value has not been able to tempt Indonesians to buy. Because consumers are generally not too concerned about environmental issues, for them the economic value is also the main thing.

“Electric cars cost more than Rp1 billion. Expensive. Consumers buy electric cars not because they are environmentally conscious, but because they are curious, is it worth switching to electric cars? In the end, it’s an economic calculation,” he added.

So in Indonesia, electric cars must be economical, and strengthened by government regulations with many incentives and infrastructure is also important so that they can be used outside the city, “he continued.

Meanwhile, according to the Chair of the ILUNI UI Policy Center, M Jibriel Avessina added, this issue is important to continue to be monitored, because Indonesia is the largest producer of raw materials for batteries.

“We will hold further discussions so that the battery industry can develop and how the role of alumni who are active in various segments can play a role. We are not optimal, but we are in the right direction,” he concluded. [dp/MTH]

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