Indonesia is one of the countries in the world with an abundance of natural mineral resources needed to manufacture electric vehicle (EV) batteries. Among them are lithium and nickel. Efforts are made to process these raw materials in the country before being marketed or further produced as finished products in other countries.
Quoted from the Antara news agency, Deputy for Infrastructure and Transportation Coordination at the Coordinating Ministry for Maritime Affairs and Fisheries, Rachmat Kaimuddin in Jakarta stated that he had met with four electric vehicle manufacturing companies in China.
They expressed their readiness to invest in Indonesia, this was stated by the official of the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves).
“I just returned from China. “We have held discussions with four manufacturers and they all in principle appreciate the policy we have made,” explained Rachmat Kaimuddin.
Without specifying which brands have expressed approval, this official from the Coordinating Ministry for Maritime Affairs and Fisheries gave the name of one of the manufacturers.
“Of the four manufacturers, one of them has carried out production in Indonesia. Namely Wuling, it has arrived here and is already producing. Yesterday (Wuling) launched a new product. Three other brands will follow later. It is not in my capacity to make a statement, ” he continued.
The four EV manufacturers who are willing to present electric car products in Indonesia have also expressed their readiness to follow the provisions in force in Indonesia. One of them is the requirement to use a Domestic Component Level (TKDN) of 40 percent.
The arrival of four vehicle manufacturers This electricity will help Indonesia to achieve the production target of 600 thousand units of electric cars by 2030 according to the target set by President Joko Widodo.
“We have conveyed the target, the President has declared a production capacity of 600 thousand by 2030. So they will bring their products to Indonesia, more EV products will enter Indonesia,” said Rachmat Kaimuddin.
Presidential Regulation (Perpres) Number 79 of 2023 concerning Amendments to Presidential Regulation Number 55 of 2019 concerning the Acceleration of the Battery Electric Vehicle Program for Road Transportation regulates tax-free incentives for electric vehicle manufacturers provided by the government to import Completely Built Up (CBU) or complete vehicle until the end of 2025, with certain terms and conditions.
“In Presidential Decree (Number) 55 (Year) 2019 to (Number) 79 (Year) 2023, the philosophy is to provide incentives to be able to test the market, for those who are committed to building production capacity in Indonesia. “So, if they don’t commit to building production capacity in Indonesia, they are not qualified to get this incentive,” he explained.
He said he is optimistic that the electric vehicle production target of 600 thousand units from these four factories can be achieved by 2030. He also hopes that a Ministerial Regulation (Permen) from the relevant Ministry can be issued before the end of 2023.
“For car manufacturers, the Presidential Decree has now been issued , they are waiting for candy. We are working on candy. The hope is that it will be there before the end of the year. “Namely from four ministries: Coordinating Ministry for Maritime Affairs, Finance, Industry and Trade,” he concluded.
