Indonesia Targets Production of 600,000 EV Units by 2030
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3 July 2024 21:54 WIB
TEMPO.CO, Jakarta - Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan targets electric vehicle, or EV, production in Indonesia to reach 600,000 units by 2030. Luhut said this could reduce emissions by up to 160,000 tons of CO2 per year.
"Additionally, (EV production) will reduce fuel imports by 45 million liters per year and save subsidies of Rp131 billion per year," said Luhut at the inauguration of the PT Hyundai LG Industry (HLI) Green Power Karawang electric car battery factory, on Wednesday, 3 July 2024, broadcast via the Ministry of Investment's YouTube channel.
Luhut claimed establishing an EV ecosystem will boost the added value of Indonesia’s domestic industry as the domestic component level (TKDN) also improved. According to Luhut, utilization of domestically produced LG batteries will boost TKDN value from 40 percent to 80 percent.
"Indonesia is ready to become a global key player in the EV supply chain by utilizing our rich resources integrated with edge-cutting technology,” the minister said.
President Joko Widodo or Jokowi inaugurated HLI Green Power EV battery factory in Karawang, West Java, on Wednesday, July 3, 2024. This factory is claimed to be the first and largest in Southeast Asia. South Korea invested US$3.1 billion or Rp44.88 trillion for this EV company with a projected capacity of 30 GWh.
Jokowi claimed the HLI Green Power inauguration is a new milestone for Indonesia. "We’ll play an essential role in the EV supply chain by building the smelter and an electric vehicle battery factory,” the president said.
RIRI RAHAYU
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