Jakarta, IO – Indonesia and Australia have agreed to work together to develop electric vehicle (EV) ecosystem. This was marked by the recent signing of an MoU.
According to Coordinating Economic Ministry, the MoU contains a road map for the implementation of the initiative. Indonesia, with its large population, is projected to become a big market for EVs, per CNN Indonesia, Fri (9/2).
The government has continued to provide incentives for self-reliance in domestic EV industry. It envisages Indonesia to become an EV production hub for the Southeast Asia region and Australia.
Coordinating Economic Minister Airlangga Hartarto said Indonesia has every potential to become a key part of the global supply chain for EV batteries through its downstreaming policy of natural resources such as nickel, aluminum and copper.
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Airlangga also asked domestic producers to consider investing in this field. “We encourage electric car manufacturers to immediately deepen their structure and make Indonesia a production base for Asean and Australia, in addition to encouraging the domestic market to continue to grow,” said Airlangga.
In recent years, Indonesia has developed the nickel downstream industry to drive the development of EV ecosystem. The country now has three plants that produce battery precursors. Several battery manufacturing projects are also expected to commence in the next few years. (un)