TEMPO.CO, Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin) is eyeing to establish a partnership with the Philippines in the downstream sector of electric vehicle, or EV, production. Kadin chairman Arsjad Rasjid said that Indonesia has the world's largest nickel reserves. The cooperation between the neighboring nations leads the electric vehicle ecosystem in ASEAN and the world.

"With closer cooperation, the two countries have the potential to increase world nickel production by up to 50 percent," Arsjad said in a written statement on Wednesday, March 29.

Arsjad explained the combined nickel reserves in Indonesia and the Philippines are between 33 and 40 percent of nickel ore reserves worldwide. He said that this provides a strong foundation for cooperation, making the countries the leaders in the electric vehicle and battery industry ecosystem.

Arsjad stressed the importance of downstream for the successful development of the electric vehicle and battery industries. He noted that the export value of nickel in the form of iron and steel, matte nickel, and mixed hydrate precipitate reached US$20 million.

Meanwhile, Indonesia's nickel downstream is considered successful in increasing the added value of the commodity from US$1.1 billion to US$20.8 billion in 2021.

"This example of success motivated Indonesia to encourage the Philippines to be able to take part in the successful downstreaming of the electric vehicle and battery industries in the ASEAN region," he said.

Arsyad said Indonesia's success in the electric vehicle and battery industry is closely related to its downstream role. By sharing Kadin's experiences with the Philippines, Kadin hopes to strengthen partnerships between countries and promote sustainable economic growth in the sector.

Riani Sanusi Putri

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