Participating In Development Of Electric Vehicles, Indonesia Investment Authority Himpun Dana 2 Billion US Dollars From Two Companies

Chairman of the Board of Directors of INA Ridha Wirakusumah at the B20 Summit Indonesia 2022. (Photo: Doc. Antara)

BALI - Indonesia Investment Authority (INA) raised $2 billion from two battery manufacturers, namely Contemporary Amperex Technology Co., Limited (CATL) and CMB International for the development of electric vehicles (EV).

"The amount of funds that we will announce is estimated at 2 billion US dollars. The majority of this will be invested in Indonesia," said Chairman of the INA Board of Directors Ridha Wirakusumah at the B20 Summit Indonesia 2022, quoted by Antara, Monday, November 14.

Ridha explained that his party is developing EVs in order to contribute to reducing CO2 emissions while at the same time encouraging the pace of adoption of electric vehicles and market penetration.

Electric vehicles are expected to progress as they save costs so that INA is interested in supporting EV development.

What's more, the global market for EVs has grown very rapidly, namely in just three years, it turns out that the number of EVs on the road has tripled.

In 2021 alone, there are more than 16 million EVs on the road and it is projected that in four years more than 50 percent of all vehicles sold are electric vehicles.

"Undeniably, the value chain to the end for EVs is huge. By 2030 to 2035 all cars are expected to be 100 percent electric," said Ridha.

The Indonesian government itself has set a target to support the integration of the electric vehicle supply chain, namely the production target by 2030 is 2.5 million electric motorcycles and 600 thousand electric cars.

According to him, the motorcycle market in Indonesia is a great opportunity because by 2025 it is projected that there will be 2.1 million sales of electric motorcycles and 400 thousand sales of electric cars.