Hyundai Battery Factory Inaugurated, Luhut: Saves Fuel Subsidy Of Up To IDR 131 Billion

Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan was present and accompanied President Joko Widodo at the inauguration of an electric vehicle battery factory in Karawang, West Java today, Wednesday, July 3.

In his remarks, Luhut said Indonesia is targeting the production of 600,000 electric vehicle batteries by 2030. and the production of Hyundai Kona Electric reaches 50,000 units per year.

Luhut said, with this production, it is estimated that it will reduce CO2 emissions by around 160,000 tons per year and will also reduce fuel imports by up to 45 million liters per year.

"As well as saving fuel subsidies which reach Rp131 billion per year," said Luhut, Wednesday, July 3.

Luhut also ensured that the number would increase as the number of vehicles in circulation.

Just so you know, this is in line with the Minister of Industry Regulation (Permenperin) No. 28 of 2023 concerning changes to Permenperin No. 6 of 2022 concerning road maps for battery-based electric motorized vehicles. The regulation states the target of developing the KLBB industry for four wheels and more than 400,000 units by 2025 and 600,000 units by 2030, and 1 million units by 2035.

Luhut also reported that global demand for electric vehicles grew at a previously occurring level and lithium batteries were at the core of this stalled transformation.

According to him, this is thanks to the use of Indonesia's rich natural resources (SDA) as well as investment steps in high and latest technology.

"Indonesia is ready to become a key player in the global supply chain of electric vehicles from upstream to downstream," concluded Luhut.