The Ministry Of Industry Sets EV Development Strategies For Sustainable Development

JAKARTA – The Ministry of Industry (Kemenperin) stated that the development of an electric vehicle (EV) ecosystem is important in order to reduce the use of conventional energy sources towards the use of renewable energy sources.

Minister of Industry Agus Gumiwang Kartasasmita said climate change is a global issue that has a big impact on humanity, so the concept of green industry is a strategic priority program that needs to be implemented.

"This road map outlines key steps in developing vital components such as batteries, electric motors and converters in an effort to create more efficient electric vehicles," he said in a written statement quoted on Sunday, September 10.

According to Agus, global demand for EVs is estimated to reach 55 million units in 2024. It is stated that the use of EVs as a means of daily transportation in Indonesia is also showing an increasing trend. This encourages increased demand for lithium batteries.

“The Ministry of Industry has created a road map for battery development in this field, including electric vehicle batteries and others. "One of the things we want to achieve by 2030 is electric vehicles that have high efficiency and local content of around 80 percent," he said.

To achieve this target, he continued, the government has established progressive policies, including providing fiscal stimulus and incentives.

"We also encourage the use of electric vehicles as daily operational vehicles for central and regional government entities," he said.

Meanwhile, the government is implementing two main policies to accelerate the use of EVs. First, by providing assistance to purchase two-wheeled Battery-Based Electric Motorized Vehicles (KBLBB) that meet the Domestic Component Level requirements of at least 40 percent.

Second, provide a VAT DTP discount of 5-10 percent for four-wheeled KBLBB and electric buses, depending on the local content.