Minister of Industry Agus Gumiwang Kartasasmita via Liliek Widodo, Director of Metal Industry at the Ministry of Industry, in an online discussion entitled “Building an Electric Vehicle Ecosystem in Indonesia” in Jakarta, earlier this week stated that Indonesia is one of the countries that has large nickel reserves. That is 21 million tons or 30 percent of world reserves.
This makes the country have the potential to become a strategic player in the lithium battery industry in the world.
Electric car batteries resulting from the Volvo-Northvolt partnership as an illustration [Volvo via ANTARA]. It is estimated that until 2030 the need for nickel for battery material for electric vehicles, aka EVs, will continue to increase.
Quoted from the Antara news agency, the assistance program for purchasing Battery-Based Electric Motor Vehicles (KBLBB) for two-wheeled vehicles and the government-borne Value Added Tax (VAT DTP) incentive policy for four-wheeled vehicles have had a positive impact on sales of battery-based electric vehicles (BEV) .
“The VAT DTP program for four wheels has proven to have a positive impact on BEV vehicle sales, which can be proven by sales in the second quarter of 4,628, an increase of 176 percent compared to the first quarter before incentives,” explained Liliek Widodo, Director of the Metal Industry at the Ministry of Industry when reading the presentation from Minister of Industry Agus Gumiwang Kartasasmita.
“Similarly, third quarter sales of 4,257 units increased by 154 percent when compared to the first quarter before incentives,” he added.
Minister of Industry Agus Gumiwang Kartasasmita stated that to encourage the acceleration of electric cars, the government has issued two new programs.
Namely assistance for the purchase of two-wheeled KBLBB vehicles worth IDR 7 million and a VAT program borne by the government for four wheels or more amounting to a 10 percent tax deduction.
“The KBLBB two-wheeled assistance program has distributed 12,350 units. These sales have increased by 9,900 units or 41.3 percent since the implementation of Permenperin No.21/2023 concerning Changes to Requirements for the program,” said Liliek Widodo.
The Ministry of Industry notes that currently there are 5 electric vehicle companies in Indonesia for electric buses with a capacity of 2,480 units per year, as many as 4 electric car companies with a capacity of 37 thousand units per year.
There are also 53 two- and three-wheeled electric motorbike companies with a capacity of 1,451 million units per year.
“We are trying to encourage and increase the use of battery-based electric vehicles in the country,” continued Liliek Widodo.
Investment for KBLBB also continues to be accelerated so that the domestic electric battery industry will grow which will utilize the large natural resource of nickel with various other mineral products.
“This is to obtain adequate and optimal added value for the welfare of society and the country,” concluded Liliek Widodo.