Govt Eyes Purchase of Electric Vehicles to Reach 535,000 Units until 2030

TEMPO.CO, Jakarta - Industry Minister Agus Gumiwang said the government targeted the purchase of electric vehicles (EV) to reach 535,000 units to accelerate the popularization of battery-powered electric vehicles. The target consists of 135,000 units of four-wheeled vehicles and 400,000 units of two-wheeled vehicles.

“The government will apply regulations for purchasing EVs in government institutions,” said Agus in a webinar on Friday, October 15.

He opined that Indonesia is ready to enter the automobile era through the issuance of Presidential Regulation No. 55 of 2019 which notes the accelerated use of battery electric vehicles (BEV) for transportation in a bid to reduce emission.

In 2030, Indonesia targeted to reduce carbon dioxide (CO2) emissions through 2.7 million tons for four-wheeled vehicles and 1.1 million tons for two-wheeled vehicles.

The country was also projected to become one of the players in the supply chain of electric vehicles given its large market. This potential was evident from the growth of the middle-class population and the low car ownership rate at 99 cars per 1,000 people.

Indonesia also has the largest nickel reserves which are the main raw material for producing electric vehicle batteries. Agus said there are nine companies in the country supporting the battery industry. Five of them are providers of battery raw material and the other four are battery manufacturers.

Read: Jokowi Confident Indonesia Able to Produce Electric Vehicles in Three Years

FRANCISCA CHRISTY ROSANA