Coordinating Ministry For Maritime Affairs And Fisheries Shows Indonesian Nickel For EV Supply Chains At The COP28 Dubai Event

Nickel (Photo: dock. Antara)

JAKARTA - The Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) revealed the role of Indonesia which is currently building a global electric vehicle (EV) supply chain. This was done at the COP28 event in Dubai, UAE.Deputy for Infrastructure and Transportation Coordination of the Coordinating Ministry for Marves Rachmat Kaimuddin said Indonesia was in a strategic position to build a globally resilient electric vehicle (EV) supply chain, as the global trend of decarbonization of the transportation industry to fulfill net zero commitments. With abundant nickel resources, Indonesia has the power to drive the supply of global electric vehicles and form a more environmentally friendly future, but at the same time Indonesia must take advantage of this great opportunity to shift the automotive industry with combustion engines to electric," he said, citing Antara. Rachmat added, as global demand for vehicles in recent years, Indonesia has encouraged the adoption of electric vehicles in the domestic market, as well as attracting more investments to increase the production capacity of electric vehicles in Indonesia. Indonesia targets 2 million units of electric vehicle passenger cars and 13 million electric bicycles paving by 2030. To achieve this target, the government has launched fiscal and non-fiscal incentives for consumers and manufacturers. One form of incentives is a discounted price of IDR 7 million (equivalent to 450 US dollars) for all Indonesian people who want to buy new electric bicycles that meet 40 percent of local components. Rachmat also hints at the existence of new incentives from the government to attract more international electric vehicle manufacturers opening factories in Indonesia. Meanwhile, the government is currently working to make Indonesia an environmentally friendly vehicle production base in Southeast Asia, as well as supply the domestic market with more choices of EV vehicles.

"We need to create good demand and infrastructure. We know that currently there is not enough choice (for consumers)," he said. Rachmat conveyed this in a discussion session at the Indonesian Pavilion at COP28, Dubai, which explores various electric vehicle opportunities for international business players and stakeholders in Indonesia, which is the largest automotive market in Southeast Asia. This session also discusses some of the most pressing challenges in increasing the global supply of essential minerals, as well as realizing sustainable and responsible business practices throughout the supply chain.