Kadin Chairman Arsjad Rasjid Optimistic Of Indonesia To Become The World's Largest Electric Car Battery Manufacturer: Our Nickel Content Is Abundant

JAKARTA - Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid expressed optimism that Indonesia would become the largest electric car battery producer in the world as the construction of the first electric vehicle battery factory in Southeast Asia was inaugurated by President Joko Widodo today, Wednesday 15 September.

President Joko Widodo, in Karawang, West Java, carried out the groundbreaking or laying of the first stone for the construction of the factory with an investment value of US$1.1 billion or around Rp. 15.95 trillion.

Related to this, Arsjad expressed his optimism because of the large supply of nickel in Indonesia for the manufacture of lithium batteries, which are the main ingredients for the development of electric cars. Indonesia itself has abundant nickel content.

"Nickel is the main material for the manufacture of lithium batteries used for electric cars. We can control one of the lithium battery supply chains and develop the world's electric cars," he said in his official statement, quoted by Antara.

According to him, in addition to having abundant natural resources in the form of nickel, to achieve this goal, Indonesia must also have highly competitive human resources (HR), be able to take advantage of the level of domestic components (TKDN), and utilize technology that can be developed. in the country.

"We buy technology from abroad to be developed in Indonesia. Many TKDN components are in Indonesia, so the cost of making batteries from Indonesia will be more competitive," added Arsjad.

Earlier in his remarks, the President stated that Indonesia would become a major producer of nickel-based finished goods such as lithium batteries, electric batteries, and electric vehicle batteries. Jokowi even targets the realization to be realized in the next 3-4 years.

"I believe in the next 3-4 years, through good management, good management," said Jokowi.

The President said the construction of an electric vehicle battery factory in the country is a manifestation of the government's seriousness in downstreaming the industry.

According to him, Indonesia must dare to change the economic structure that has been commodity-based so that it can go downstream and become a strong industrial country based on the development of technological innovation.

The downstream nickel industry, continued the President, could significantly increase the added value of nickel ore. If processed into battery cells, its value can increase 6-7 times. And if it is made into an electric car, the added value will increase again, which is 11 times.

Jokowi emphasized that the government is also fully committed to developing the battery and electric vehicle ecosystem. One of the supporting efforts is through structural reform policies to provide legal certainty and ease of licensing.